In honour of International Women’s day, consider these key facts, and what you can do, as a woman to take control of your super and close the gap.
Women are a force to behold!
Recently we saw a lot of press about women being more likely to own their home than men*. This is despite the gender pay gap, particularly for younger women.
Yet, women still have under two thirds the super saved than men!
So does this speak to better spending habits? Maybe, but super is generally linked to your time working, so if you have time off for caring for your children, then this will put you behind.
There are a few things that can help women to catch up on their super savings.
- The Catch-Up Rules
These rules allow you to exceed the $25,000 contribution ‘gap’ rules by carrying over the unused limit to the next year. In fact, you can carry this over for up to 5 years. So, if you’re returning from maternity leave, you can play catch up once you’re back working again. Please see the ATO website for the rules.
- Spouse Contribution Splitting Rules
While you’re not working, you may also consider getting your partner to chip into your super as well. If you’re earning less than $37,000, then the Spouse Contribution Splitting rules can help you keep adding to your super, while you’re caring for the kiddies and your partner take advantage of a tax concession on the contributions. This will apply to anyone that is married or de facto, including same sex couples. Please see the ATO website for further details.
- Downsizer Rules
In honour of International Women’s day, consider these key facts, and what you can do, as a woman to take control of your super and close the gap. If you’re over 65, then you could consider the ‘downsizer’ rules that allows you to contribute up to $300,000 to help with you super. If you sell a residence you live in, then you can add it to your super for concessional tax treatment! Please see this link for eligibility and further details. You’re best to speak to a financial planner to make sure this is a good fit for you.
- Transition to Retirement Rules
Likewise, taking advantage of the Transition to Retirement rules, means you can draw down on your super (as a pension) while you’re still salary sacrificing into your super to keep it growing. It might be a tax effective setup for you but of course, you should see a financial planner to help you really understand the numbers as they relate to you. Read more about how Transition to Retirement works.
- Consolidation & Lost Super
Hug your super and bring it all together. If you don’t have one consolidated account, then review this. One fund, with one set of fees will impact on your final balance. It’s super easy to do this just by logging on to your super account. Take action now!
And of course, don’t forget the power of compounding interest! Even a little bit contributed, and the earlier on the better, may make a huge difference to your final balance!
The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129