Most people are well into their forties before they begin to take a proactive interest in building their super.
I would ask whether you know how much superannuation you have saved up and, if you do, are you on track for a comfortable retirement? The kind where not only do you have a roof over your head, but one that involves exotic travel destinations (Post CV obviously) and all of life’s good stuff?
The vast majority of us (80%!) retire with insufficient savings to live comfortably in retirement. Overall, women especially retire with 47% less superannuation savings than men.
To have a comfortable retirement we need to have saved $545,000 (in today’s dollars) in super by age 67.
In other words, if you turn 50 this year you need to have accumulated $257,000 in superannuation savings. In reality, most women aged 50 have just $100,000 in super savings.
The main contributing factors are the gender wage gap and the fact that women are more likely than men to take time out of the workforce to look after kids or ageing or sick family members.
If you’re concerned about a potential shortfall, you are far from alone. Talking to an advisor can help you get back on track. A course correction (even a late one) can make all difference to where you will end up.
To improve your retirement outcome, we suggest you begin making voluntary contributions as early as possible in your working life, keep track of your super balance and also have a finger on the pulse in terms of the fees you pay to your super provider.
Women over the age of 45 are one of the fastest growing groups of people who are homeless in Australia.
I hope that the upcoming budget will help correct some of this inequality.
If you feel overwhelmed at the thought of taking charge of your retirement planning just remember that “action is the foundational key to all success.” (- Pablo Picasso).