Women and Superannuation
Four Super Steps Towards Securing Your Future
November 2015
Page 1 - Women and Superannuation: Four Super Steps towards securing your future
Finding $25 a week and 30 minutes could mean
thousands of dollars of extra income later.
In around 30 minutes, you can start taking some simple,
effective Super Steps aimed at improving your future financial
security.
Every year of delay makes a real difference, so find the time now.
Women generally retire with thousands of dollars less in their superannuation (super)
accounts than men. Women also live longer than men, which means women are more
likely than men to live less comfortably, or even in poverty, during their retirement.
For those with superannuation accounts, a woman’s average account balance of
$68 600 is just over 60 per cent of the average balance for men of around $112 000.i
There are many reasons why women have less super than men, including lower
average salaries, working part-time or casually and taking time out of the workforce to
have children or care for older family members. The barriers women face to
accumulating super can be further compounded if they are older, Aboriginal, living in
rural or remote areas, from a Culturally and Linguistically Diverse background, or living
with disability. For more information see the booklet ‘Understanding and Managing Your
Superannuation’.
Importantly you can do something to maximise your super AND it is not
as difficult as it might seem.
Your super is actually part of your wage or salary package. It is equivalent to 9.5% (from
1 July 2014) of your wage/salary, if you earn at least $450 a month (before tax) from
your employer.ii
Most of us wouldn’t ignore or lose nearly 10% of our wage/salary, yet that’s what many
of us do when it comes to super.
Page 2 - Women and Superannuation: Four Super Steps towards securing your future
Your Super Steps
Here are four Super Steps aimed at increasing your super.
Not all steps will suit all women and you don’t have to take all the steps at once or in any
particular order to make a difference to your super.
Find lost super—If you have had more than one employer, you may have more
than one super account that has your money in it. To find your lost super, you can
search online using SuperSeeker at www.ato.gov.au/superseeker or phone 13 28 65 for
a 24-hour self-help service. You will need to provide your tax file number if you phone.
Rollover or combine super funds—Multiple super funds can mean you pay
more fees and lose track of your hard-earned money. It can make sense to roll all your
super accounts into one fund. This can minimise costs and help to increase your
retirement income. Look at what each fund offers, including fees and your insurance
benefits, before you decide which fund you want to roll your accounts into. Be aware,
some funds charge a termination or exit fee to transfer your super money. You can get
a form from www.ato.gov.au, called a ‘Rollover Initiation Request Form’, to help you
rollover your super.
Consider your investment option—Super funds invest your money with the
aim of increasing your account balance over time. Different investment options can grow
your money at different rates and have different levels of risk. Your super statement will
tell you how your money is being invested. Your statement or your super fund’s website
will have information about the investment options your fund offers and you can choose
which option suits you best. Take some time to learn about the different types of
investment options available. You can read about them on the Australian Securities and
Investment Commission (ASIC) website www.moneysmart.gov.au/superannuation-andretirement/how-super-works/super-investment-options or contact your super fund.
Make extra contributions—Your employer contributes the equivalent of at
least 9.5 per cent of your salary into your super fund. If you make extra personal
contributions to your super, your balance can increase quicker. Any extra amounts you
contribute to your super may be taxed at a lower rate than usual. Even small extra
contributions can make a big difference to your super balance. More information is
available from https://www.ato.gov.au/individuals/super/growing-your-super/adding-tomy-super/
Extra personal contributions
You can make personal contributions to your super from your after-tax (nett) pay or
sometimes through salary sacrifice (your before-tax or gross pay) arrangements. Not all
employers offer salary sacrifice arrangements so you will need to check with your payroll
or human resources officer to find out if your employer does.
Page 3 - Women and Superannuation: Four Super Steps towards securing your future
Sometimes, if you make extra contributions, you may be eligible for further super
contributions from your employer or the Australian Government. To find out if your
employer offers this arrangement contact your payroll or human resources officer.
For information about the government’s super co-contribution for lower income earners
who make personal (after-tax) contributions and earn less than the annual threshold
($50 454 in 2015-16), visit the ASIC website www.moneysmart.gov.au/superannuationand-retirement/how-super-works/super-contributions/contributing-extra-to-super#free
You should consider the most financially advantageous way for you to make your
contributions. Calculators such as those on the ASIC or Super Guru websites can assist
you to decide the best way to make any extra contributions.
The difference an extra $25 each week can make to your
Super
Karen is 37 years old and earns $40 000 a year. She does not make any extra
contributions to her super. When she retires, aged 67 years, her super fund balance
would be $196 253.
Fatima is also 37 years old and earns $40 000. She contributes an extra $25 a week into
her super fund. Because of her income level, and her after-tax personal contributions,
Fatima is also eligible for extra contributions through the government’s super cocontribution scheme. When Fatima retires, aged 67 years, her super fund balance would
be $266 103, nearly $70 000 more.iii
For more examples
To find a scenario that best fits your circumstances, see the booklet ‘Women
and Superannuation: Understanding and Managing Your Superannuation’.
Page 4 - Women and Superannuation: Four Super Steps towards securing your future
Self-Employed or Small Business Owner?
The number of Western Australian women who are self-employed or starting their own
business is increasing.
Most self-employed people and small business owners are not required to set aside
money to pay themselves super. However, you still need to plan for your retirement
income, and paying yourself super and taking the Super Steps can make sense.
Divorce—did you know?
Divorce can impact on retirement living standards, especially when one spouse, often
the wife, has significantly less super, but there have been some recent changes. In
Western Australia, superannuation can now be treated as an asset and may be split
between married couples who divorce.
Information is available from the Attorney-General’s Department
www.ag.gov.au/FamiliesAndMarriage/Families/SuperSplitting
You work hard for your super!
Take a few Super Steps now to help secure your future
income.
Page 5 - Women and Superannuation: Four Super Steps towards securing your future
For more information
Department of Local Government and Communities, Women and Super
Understanding and Managing Your Superannuation booklet, www.dlgc.wa.gov.au
Women’s Money Toolkit https://www.moneysmart.gov.au/life-events-andyou/women/womens-money-toolkit
The Australian Taxation Office www.ato.gov.au or phone 13 10 20
Centrelink’s free Financial Information Service
http://www.humanservices.gov.au/customer/subjects/age-pension-and-planning-yourretirement or phone 13 23 00
MoneySmart https://www.moneysmart.gov.au/superannuation-and-retirement
Super Guru www.superguru.com.au
Your Superannuation Fund Their contact details should be on your annual statement
or your employer/manager/human resources staff would know the details of your current
fund.
If you are interested in working with a financial adviser, there are some things to
consider at: www.moneysmart.gov.au/investing/financial-advice/choosing-an-adviser
Page 6 - Women and Superannuation: Four Super Steps towards securing your future
Disclaimer: The information and advice within this document is provided voluntarily by
Department of Local Government and Communities as a public service. The information
and advice is provided in good faith and is derived from sources believed to be reliable
and accurate. No representation or warranty, express or implied, is made as to the
accuracy, completeness or fitness for purpose of this document. The reader of this
document should satisfy him or herself concerning its application to their situation. The
State of Western Australia, the Department of Local Government and Communities and
their officers expressly disclaim liability for any act or omission occurring in reliance on
this document or for any consequences of such act or omission. Current as at
November 2015.
Women and Superannuation: Four Super Steps towards securing your future is
available for viewing and download from the Department of Local Government and
Communities website: www.dlgc.wa.gov.au
For more information, please contact:
Department of Local Government and Communities
Gordon Stephenson House, 140 William Street, Perth WA 6000
GPO Box R1250, Perth WA 6844
Telephone: (08) 6551 8700 Fax: (08) 6552 1555
Freecall: 1800 620 511 (Country only)
Email: info@dlgc.wa.gov.au Website: www.dlgc.wa.gov.au
Translating and Interpreting Service (TIS) – Tel: 13 14 50
i Ross Clare, ‘An update on the level and distribution of retirement savings’. March 2014. Association of
Superannuation funds of Australia, p.3.
ii
http://ato.gov.au/Individuals/Super/Compulsory-employer-contributions/
iii
SOURCE: Super Guru Retirement Projector Calculator (www.superguru.com.au). Other assumptions to those
detailed in the above scenario and the calculators standard assumptions at 7/08/2015 are that Karen and Fatima will
take one further career break for two years (working part-time) to accommodate caring responsibilities and choose a
balanced investment option with a current super account balance of $10 000. The calculator works out the result from
the current age onwards.
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