Superannuation isn’t something that many people spend a lot of time thinking about on a day-to-day basis (unless, you know, you work in superannuation). It can seem complicated, time-consuming, and – more than anything else – a problem for Future You.
Present You is probably concerned with more pressing, immediate worries. Kids. Day care. Work. Deadlines. Lunchboxes. Washing up. Reality television. Trying to remember which day is ‘bin day’.
But here’s a fact that might make you a bit more concerned: the average woman’s super retirement payout is $112K, compared to $198K for men.
To put that in perspective, the average woman’s retirement payout is 43 per cent less than men.
There are a number of factors that contribute to this. Women often stop work to start a family, work part time while raising children, and live almost five years longer than men – while having less money to support them during those years.
Just as an FYI, you should know that this post is sponsored by The Australian Taxation Office. But all opinions expressed by the author are 100% authentic and written in their own words.
This is why it’s so important that, as women, we start thinking early on about how we can maximise our savings.
The earlier you start thinking about it, the stronger and safer a position Future You will be in.
Taking small, manageable steps now will put you in a far better position in the future – and it doesn’t have to be hard. The Australian Taxation Office has created the 5 Step Super Check, to give women the power to control their super situation. Here’s what you can do:
1. Check your super statement
It’s entirely likely that you’ve been receiving snail mail from your super provider – and recycling the letters immediately. (Okay, maybe that’s just me.) But it turns out it’s actually a good idea to open those envelopes, and take a look at your super statement. How can you grow your super, if you don’t know how much is in there in the first place?
Keep an eye on how your super grows over time, and become aware of what fees and insurance costs you might be paying. Basically, get informed about your situation.
2. Make sure your fund has your TFN
You can check if your super fund has your Tax File Number (TFN), by looking at the statements they send you (yet another reason to open that snail mail). There are a few reasons you should make sure your fund has your TFN; the first of which being that without it, your fund is liable to pay extra income tax on contributions your employer makes for you – and they might take this money out of your account.