However, ask some men and they’ll probably tell you they stopped buying encyclopaedias because women know everything.
Sexist? No, because it means most women are aware of an important fact – they won’t have a large enough superannuation balance for retirement.
New figures released by the Australian Bureau of Statistics show the average superannuation account balance in 2009-10 was $71,645 for men and $40,475 for women.
And the average superannuation payout in 2009-10 was $198,000 for men and $112,600 for women.
The key reasons for the discrepancies are lower salaries and employment being interrupted when having children.
Now while women have the bonus of living longer than men, that only serves to exacerbate their need for extra money in retirement.
Knowing there’s a shortfall is one thing, but doing something about it is another, so taking an interest in superannuation is a good start in tackling the problem.
Understanding your investment options and choosing something that suits your goals is better than complete ignorance of the system.
Most people don’t pay attention to their superannuation balance until it becomes a pressing matter – wrinkles and creaking bones – and usually then it’s too late to make a huge difference.
Extra contributions earlier in life are clearly the best way to get ahead of the curve and pre-empt any absences from the workforce.
Salary sacrificing from your pre-tax income is one option and is tax friendly because you’ll pay less income tax.
Contributions from after tax income can also be valuable as they don’t attract contributions tax.
If you earn less than $61,920 (pre-tax) you’re eligible to get some contributions from the government.
Have an assessable income of less than $31,920 (pre-tax) and the government will match contributions up to $1,000.
Of course the facetious would say about 50% of you already knew that…
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL / ACL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. Need help with your financial your financial future, we think we’re Australia’s top financial adviser.
