8 March 2023
WOMEN AND SUPER
SUPER TIPS FOR WOMEN
While female participation in the Australian workforce is higher than ever, women are still lagging when it comes to wealth and financial security.
Women’s participation in paid work has increased considerably over the past five decades with women now making up almost half of Australia’s paid workforce, compared with around 30 percent in 1966.
Yet when it comes to a secure retirement, the odds remain stacked against women, who still retire with 24 percent less super than their male counterparts. This is in no small part due to the gender pay gap. Based on full-time earnings, Australian women earn 15 percent less than men, according to Women in Super.
Women are also more likely to take time out from paid employment or work part time to take on caring roles such as looking after children or elderly parents. In Australia, women are in part-time employment at three times the rate of men.
Despite these challenges, there are some steps that members can take to get their super on track.
Start investing early
Making voluntary contributions to your super early in your working life may make a difference at retirement thanks to the benefits of compounding interest. It’s never too late to start making contributions, but the sooner you start putting your hard-earned cash to work, the quicker you might be able to achieve your retirement goals. You should consider the applicable caps when making contributions. An Active Super financial planner can assist you if you need advice.
If you and your spouse would like to make sure you both retire with a similar super balance – even if you are on different incomes – super splitting might be a good option to consider. It allows fund members to split part of their contributions already in super into their partner’s super account. Eligibility conditions apply. Applications can be found here.
If you are earning less than your spouse or not earning an income at all, your spouse may be able to claim a tax offset of up to $540 by putting after-tax money into your super account. For further information on spouse contributions and whether they are right for you and your partner, please speak to an Active Super financial planner.
Contribute regularly when earning to make up for breaks
Making regular contributions while working can help compensate for time away from work - whether it be to care for loved ones or other reasons such as job loss. Even small amounts can make a difference when invested over time.
When personal circumstances change significantly, insurance needs may need to be reassessed.
Since November 2022, Active Super has simplified the process for members to increase their life insurance cover where they have undergone a ‘life event’ such as buying a home, getting married, having a child or losing a partner. Active Super members can now apply for additional life insurance cover by answering five questions on the application for Life Events cover form*, without undergoing the full underwriting process and the associated applications and medical check-ups sometimes required to obtain insurance cover.
We’re hoping this will give our members who are going through significant life events the opportunity to easily access the level of cover they need – for them and their loved ones.
You can find out more about Life Events cover, including eligibility, on our website.
Taking these simple steps today can help to provide you with a more comfortable retirement and a more secure financial future.
If you require advice on your retirement needs, please contact one of Active Super’s financial planners on 1300 547 873 or make an appointment to see how we can help.#
*Please note, only available for members who have insurance with an Active Super Accumulation account. If you’re not sure, get in touch with our Member Services team.
#Please note, should you choose to meet with one of our planners and decide to not obtain personal advice, no fee will be payable. However, fees may apply should you choose to proceed to personal advice. Your financial planner will discuss any fee payable when meeting with you and, if a fee is applicable, will advise you of the fee should you decide to proceed with obtaining the advice.
Any advice in this article is general in nature and has been issued by LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558), as Trustee for Local Government Super (ABN 28 901 371 321) (‘Active Super’). This article does not take into account your personal objectives, financial situation or needs. Before acting on it, you should consider the appropriateness of it having regard to these matters. If you would like advice that takes into account your personal circumstances, please contact a financial adviser. LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558) has engaged Industry Fund Services Limited (ABN 54 007 016 195) (AFSL No 232514) (IFS) to facilitate the provision of financial advice to members of Active Super. Advice is provided by one of IFS’ financial planners who are Authorised Representatives of IFS. Fees may apply. Further information about the advice services that can be provided is set out in the relevant Financial Services Guide, a copy of which is available for download at www.activesuper.com.au or by calling 1300 547 873. IFS is responsible for any advice given to you by its Authorised Representatives.