There’s a stark reality all of us must face: most women today have super balances up to 25 per cent lower at retirement than men, even when we have comparable roles in the workplace.

This hits hard for women looking at retirement in the next 10 to 15 years, putting them at a severe disadvantage. Any policy change, which will be gratefully received by our daughters, is unlikely to touch the sides for today’s pre-retirees. We look at your options for filling your super gap later in life, or, if you can’t, helping you look into the gap head-on and deal with the fear.

There’s no beating around the bush here – the disadvantage imposed on women by the last three decades of the superannuation system is just plain unfair. And it’s today’s pre-retirees who bear the brunt of it.

Often, women who have dedicated their careers to crucial yet frequently underpaid sectors such as healthcare, education and hospitality find themselves at the greatest disadvantage as they approach retirement. And there are three big reasons why.

The first is the gender pay gap. Many women, even today, and certainly over previous decades, are paid less than their male colleagues, so their superannuation contributions are lower over their lifetime. As a result, their compound investment returns are also lower.

The second is the time we spend not working and not contributing to super. Many women take time out of the workplace to raise their children and care for ageing parents. This is a crucial role that we need people to play in society, and women shouldn’t be disadvantaged for doing so.

And the third is the lack of superannuation attached to maternity leave allowances, which the government has taken steps this week to tackle, announcing that superannuation would be paid on maternity leave provisions from July 1, 2025. It’s a good move, but it doesn’t help women staring at an existing gap.

So what can you do if you are an older woman facing retirement with a lower super balance?

QOSHE - Practical ways for older women to fill their superannuation gap - Bec Wilson
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Practical ways for older women to fill their superannuation gap

16 0
08.03.2024

There’s a stark reality all of us must face: most women today have super balances up to 25 per cent lower at retirement than men, even when we have comparable roles in the workplace.

This hits hard for women looking at retirement in the next 10 to 15 years, putting them at a severe disadvantage. Any policy change, which will be gratefully received by our daughters, is unlikely to touch the sides for today’s pre-retirees. We look at your options for filling your super gap later in life, or, if you........

© The Sydney Morning Herald


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