I’ve done the sums and my superannuation is not enough.
Many women like me, know that they do not have near enough superannuation to relax in the comfort of a suitable retirement.
Why? Because superannuation was not compulsory until in 1992, under the Keating Labor Government, the compulsory employer contribution scheme became a part of a wider reform package addressing Australia’s retirement income dilemma.
What is Superannuation?
Superannuation is an organizational pension program created by a company for the benefit of its employees. It is also referred to as a company pension plan. Funds deposited in a superannuation account will grow typically without any tax implications until retirement or withdrawal.
What is Salary Sacrifice?
The Australian Government has provided tax concessions to super which help to make it one of the best long-term investments. Your superannuation is essentially money put aside for your retirement – your savings. Superannuation is a long term investment, so every dollar you save could make a significant difference. Making some strategic personal efforts to add to your superannuation while still young and single will boost your benefits in the long term. By that I mean debiting your salary a few dollars, or up to an amount that does not impact your financial responsibilities, depending on your earnings, and how disciplined you are, into your superannuation before tax. This is known as salary sacrificing. The sacrifice is putting aside money that is not accessible until conditions of retirement at met.
What is this Gender Pay Gap?
As a young women of the 70’s it was an expectation that you married, settled down and began a family. Women of my generation spent decades just talking, encouraging and lobbying for women in general about breaking glass ceilings, career plans and empowerment to demand higher salaries, bigger bonuses and better conditions and the gender pay gap. With improved conditions many more women are career focused being financial planners, executives and board directors. Incremental improvements, like some companies, including the Financial Services Council, paying the superannuation guarantee for staff who take parental leave. We need to close the wealth gap for women. Inspiring young females to be more engaged with money, super and savings, right from the first time they get paid for work.
Confidence comes with Female Financial Education. The harsh reality is life’s opportunities pass too quickly. Being young creates advantages. The biggest advantage is time. The time to accumulate wealth. When financially focused you’ll notice a wealth of opportunities. Gaining confidence, respect and independence is a bonus with the ‘know how’ to be respectfully assertive when and where necessary.
Do Your Sums -Learning is an experience and money well managed creates confidence.
Design your desires with financial focus on what you believe you require. This is powerful when you actually sit down and write three columns with headings, ‘My Wants’ (things you can live without), column one and ‘My Needs’ (the already committed like rent, any loans including credit card, food, clothes, fuel, entertainment), column two and my income column three. (that is net income after tax-what your actual ‘net’ pay is noted your pay slip). If you have some funds remaining from column three then you could afford to set aside some funds for your future. Not everybody has the luxury of surplus funds.
There are so many questions for which we need answers – why, despite decades of hearing the mantra “a man is not a financial plan” most young women are doing their best to remain independent but fail to grasp the notion of future financial independence? It is a ‘now’ thing! Sadly, they can end up in real poverty in their 50s and 60s, particularly after relationship breakdown, divorce or many other factors including health issues and other life events. Money worries are known to cause people illness because they have never learned money management.
Do You Need Help?
If you have taken the time to read this article then I offer you one free consultation with me personally, a female focused expert, to help you understand the ‘why’ and what you need to do to become financially smarter and wiser. The objective is for you to know how to manage and design your finances and become self- assured. That is powerful!
Marcia Walsh Fellow CharteredFP AUS 00239 Financial Adviser Authorised Representative (no.291696)
Professional Investment Services PtyLtd ABN 11 074 608 558 Australian Financial Services Licence No 234951
Address: 270-272 Payneham Road, PAYNEHAM SA 5070 PO Box 500, MARDEN SA 5070
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