Why mums need to pay more attention to their superannuation
Superannuation is something that’s equally as important for us mums as it is for dads, but do you know how much you have in your super? There is a good chance you don’t; you may have had a few jobs and therefore have a few super funds, plus taking time out from the workforce doesn’t help either. Superannuation is something that us mums need to be paying attention to, given that the average woman’s super payout is a massive 43% less than men, the average being $198,000 for men and only $112,000 for women.
Super is something that often gets pushed aside. It’s one of those things that’s so easy to push to the back of our minds, after all retirement can seem so far away. The fact is that now is absolutely the time we should be paying more attention to our super, after all just like a bank savings account superannuation compounds, meaning the more you put in now, the faster it will grow over time, and the more you will have at retirement.
Why do women have less super?
So why do women have so little super? To start with, women earn approximately 17.5% less than men, due to pay inequality. Women take time away from work to have children, and then often will go back to work part time once the children are a little older. Just to top it off, women live on average 5 years longer than men, so we actually need more super than men do.
What can mums do to boost their super funds?
Now that you know the implications of ignoring your super, what can you do to boost it?
1. Find out how many super accounts you have open, and roll them into one fund
If you have worked a few different jobs, you may have a few super accounts on the go. It’s extremely important that you roll these multiple accounts into the one fund. Every super fund attracts management and administration fees, so you are doubling up on fees if you have more than one account open at any one time. Roll these all into the one fund and you will benefit from only paying the one set of fees, not to mention the improved compounding from having one larger super figure, rather than multiple smaller figures.
2. Check your super fund is best option for you
As we mentioned above, superannuation funds attract fees, and these fees can significantly differ between each fund. Taking the time to research which fund is best for you could result in thousands more in your pocket when you reach retirement, so it’s important that you have a fund that will work as hard as possible for you and your money.
3. Start paying a small amount into your fund if not working
You can usually contribute money toward your super fund yourself, even if you are not employed at the time, so consider if this might be a good option for you, especially if you are taking a break from work to raise your children. After all, every little bit helps.