12 Dec 2015

Just when we think everything’s going swimmingly, gender equality is improving every day and women feel like they’re finally getting a word in… Then – BAM! – yet another statistic comes to light that reveals women are still at a disadvantage. Surprise, surprise.

This time, all eyes are on super. In 2012, it was estimated that men were retiring with an average super balance of $197,000, while women retired with a comparatively measly $105,000.

That’s a difference of $92,000! Or 46.7% less! Aka. NEARLY HALF THAT OF MEN!

That pretty much sums up my feelings on the matter.

There are a number of reasons for this dramatic difference. For starters, Australia still hasn’t managed to close the wage gap that sees women earning 15-19% less than men for similar work. Women are also more likely to work in casual or part-time positions, especially after having kids, which prevents them from earning the same as those working full-time, and from climbing the ladder within their chosen field.

But, by far, the biggest impact on women’s super has to be the one thing that almost every woman will go through at some stage in their life. Yep, that pesky thing called childbirth gets in the way once again.

It’s pretty backwards that Australia still hasn’t come up with a way to effectively help women through the process of childbirth and motherhood, which still has an adverse effect on women’s earnings, super savings, and to their career progression in general. It’s not just women affected by this one either – it’s all the dads who also need to take time off to take care of their kids.

So, what’s a girl to do?

Unfortunately, a lot of the onus falls to the government to make policy changes that will be able to help women achieve a healthy superannuation balance upon retirement. Luckily, there have been talks in recent weeks that could result in positive changes being made to the way super is taxed, however, it could be some time before these are implemented, and even longer before we know whether these policy changes make any difference.

For the time being, there are other ways you can help your super now. The first being to get started. Like, ASAP. Super might be the last thing on your mind right now, but the power of compound interest means that adding super contributions now makes a significant difference to your overall savings (saving $20 in your twenties is the same as putting in $50 in your fifties). Trust me, you don’t want to be playing catch-up later in life.

So, let’s all do an exercise right now. It won’t be hard, all you’ll need to do is to go to the website of your super provider, find those logon details that you’ve probably got buried somewhere in a mound of paperwork (if you can’t find it, we all know how to use the forgot you password button), and check your super balance. Check that your employer is paying you the right amount, and ensure that you’re doing everything you can at the moment to prepare for your retirement.

If you don’t have a superannuation account yet, it’s worth reviewing the different features and benefits offered by many super providers on the market. There are some funds that provide additional benefits to parents, and while children are probably way off in the distance for most of us, it’s worth considering how it could benefit you in the future. That’s what super is all about – looking forward, and having your future-self’s back. Future-you will thank past-you for it!

Happy saving!