Female? Then chances are, you’re retirement might be a little bit screwed. Sorry, but it’s true.
With maternity leave, the low-income threshold and the gender pay gap, the fact remains that you’re likely to end up with less than half the retirement savings of the average man.
If you’re a working mum, the news is particularly grim – only one in 10 of you will have enough money squirrelled away by the time you pack up your desk for good.
But it doesn’t have to be that way.
Mamamia spoke to Money magazine editor Effie Zahos to find out how we can keep making it rain during our retirement.
1. Don’t rely on the mandatory contribution.
The baseline goal for a comfortable retirement should be around $42,893 a year, or roughly $500,000 (in addition to pension and other capital), but 30 per cent of Aussie couples and 20 per cent of singles just don’t get there.
The problem? Only seven per cent of us chuck extra money into our superannuation.
“Sixty per cent of retirees are living in poverty. You might think, I’m young, I don’t care, it’s so far away,” says Zahos, “But if you just rely on the SG contributions (the 9.5 per cent your employer makes on your behalf), you too will live in poverty. It’s not enough.”
2. Pay yourself forward. Start now.
Not starting early is the biggest mistake you can make, so contribute as much as possible now – yes, that’s now – whether that means salary sacrificing or simply tucking away 10 per cent of your tax return each year.
“I was 20 once and I can tell you now, I wish I had done that, because I wouldn’t have to be doing as much as I’m doing now to catch up,” says Zahos.
The reality is, if you can find money for a movie, weekly takeaway or a night out with friends, you can find a little for your super.
“If you put just ten bucks a week in there, you’d have $62,000 extra,” says Zahos.