According to a 2020 report on the Future Face of Poverty is Female, in Australia, an average woman retires with 4 per cent less superannuation investment than a man. The main reasons for this are the time off work to take care of families, the gender pay gap and the types of jobs women are more likely to be hired for that may not pay as much. It also leads them to have fewer savings than their male counterparts during retirement. Many governmental and institutional changes must happen to bring a systematic change for their betterment. However, women can do a lot to manage their finances such that they can gain from their super by consulting a financial planner in Sydney.

Use One Super Fund Instead of Multiple Ones

Over 1,671,423 women form the women labour force in NSW, including Sydney. The female participation rate has increased from 44% to 55.7% in 2010. Many women, throughout their careers, work in multiple companies or with employers who would have paid compulsory super contributions into different funds they own. Financial planners recommend consolidating their super accounts into one. It enables them to save money through maintenance fees and quickly keep track of their funds. They can either contact the fund they want to hold as a permanent account or consult a financial planner in Sydney to help organise their super.

Check for Lost Investments

If a working woman has multiple super funds, there might be instances when some money is lost or forgotten, especially if they have not tracked it over the years. In such cases, financial planners highly recommend individuals to check the Australian Securities and Investment Commission (ASIC) or the MoneySmart Tool to find unclaimed funds. They can consolidate such an amount with the super funds they already manage.

Research About the Available Fund Options

A trusted financial planner in Sydney would help create an efficient plan to manage super funds. However, it is beneficial for women to be aware of their financial situation, financial goals, various accounts and fund options available. All of the information is available online. It would help them to check the investment options available that match their requirements. They can do so considering their stage of life and the amount of risk they are willing to take. Most super funds offer income protection, permanent disability cover, and life insurance for their clients. Buying such insurances through super can significantly reduce the premium due to its buying power. Also, the premiums get deducted from the super account, reducing the expenditure from their incomes.

Invest A Little Extra

Some employers provide the option for employees to contribute an additional amount from their salaries to their super during each pay period. It helps them boost their super balance in a tax-effective way as the income amount gets a tax that is 15% less than the usual tax amount. There are different limits on how an individual can contribute to a super account under the tax rate each year. It mainly depends on age. Those under the age of 50 can contribute a maximum of 30,000 AUD, and those older than 50 can contribute more under the usual tax rate.

Seek Contributions from Spouses and the Government

Stay-at-home parents or those who earn lesser than their spouses can consider making extra contributions to their super accounts from their partners. They can also obtain 18% tax benefits up to 30,000 AUD through their contributions. Those who earn less than 50,454 AUD before tax might be eligible for governmental contributions to the super account.