Superannuation for Women with Alison Greenwood

Alison Greenwood, Superannuation for Women
Alison Greenwood is a financial advisor who is keen for everyone to be well-informed about wealth creation. She is a regular guest on Treasuring Mothers.

Alison chats to Jenny about superannuation (again*). But this time it’s a talk tailored specifically for women. We need to guard against our disadvantages, because woman almost always retire on less than men!

So, how can women build up their superannuation? Even when they’re working fewer hours, or not working at all?

GUEST: Alison Greenwood
HOST:
Jenny Baxter

Please note this advice is given for Australian residents. Also, the figures quoted are relevant for the 2018-2019 financial year. However, the basic principles still hold true.

*Alison spoke more generally about Superannuation 101 in Episode 9 >>>


Show Notes

Superannuation for Women with Alison Greenwood

  • Most women take time off work for lengths of time. This is usually to care for children or elderly parents. Or, they may work part-time for much of their working life. As a result, their employer is not putting as much money into super.
  • In 2017-18, women had an average of $68,000 in their accounts. But men had an average of $112,000!
  • Also last year, retiring women had an average of $157,000 in their superannuation accounts. However, this compares with men retiring on an average of $271,000. These are still very low account balances, given that you will probably live for at least 20 years  after retirement.
  • The Australian government has put in place a number of ways to assist women:
  • It’s good to build up your super so to take advantage of the decreased tax rates on offer.
  • Why not use the tax concessions that are provided for your benefit?
  • “If everyone had a financial plan when they first went into the workforce, the world would be a different place!”
  • If you wait until the kids are grown up and have left home then it’s too late. Your time to save is very reduced. It’s far better to get into planning this early in life.
  • You don’t know how much the rules are going to change. So it’s good to prepare now, because we don’t know what the future will hold.

Superannuation for Women with Alison Greenwood