Recent comments from the Women In Super chair Cate Wood have shown that men are saving more than women for their superannuation funds, and more needs to be done to ensure that women are putting away an appropriate amount of funds for retirement income.
“The debate about changes to the superannuation system in the upcoming federal budget has caused great concern for many women regarding the security of their superannuation savings and offered no prospect of helping them overcome the retirement savings gap,” stated Ms Wood.
Ms Wood then went on to say that women retire with roughly half of the superannuation savings of a man.
At a Doorstop Interview on April 3, minister for financial services and superannuation Bill Shorten stated that men in Australia on average are retiring with savings of around $150,000 – $200,000 in their superannuation accounts.
However, women are being halted by their lower wage rates and are averaging around $100,000 of superannuation savings.
Mr Shorten stated that many people in Australia are retiring with lump sums of around $40,000- $50,000 which is simply not enough to live comfortably on.
“For this vast bulk of people, they haven’t got enough to retire on yet and it is important that we have stable, deep politicised policy which encourages this vast bulk of Australia’s middle class to make sure that they have enough to retire upon.”
Other factors that affect how much money women are putting away in their superannuation accounts is the amount that they are working.
“Women also make up the majority of the part-time and casual sectors of the workforce and it is not uncommon for them to hold several casual or part-time positions, which quite often means they don’t work enough in a single job to qualify for the Superannuation Guarantee,” stated Ms Wood.
To be eligible for the Superannuation Guarantee, people must be earning over $450 per month from one source of income.
The high number of women who work in part-time positions may be attributed to mothers who work reduced hours so that they have spare time to take care of children, or are returning to the workforce after having their children grow older.
Whether you’re male or female, it’s extremely important to seek financial advice when planning retirement. In doing this you can gain expert information regarding how to best deal with your finances and potential entitlements.
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