The unfairer sex

Australian women are likely to have about 42% less in superannuation savings than men.

Why is that?

For starters, Australian women typically earn $25,800 a year less than men, according to recent Federal Government figures. That’s a difference of more than 20 per cent.

Data also shows that from the age of 28, women’s earnings plateau while men’s generally continue to grow. This is partly due to women taking career breaks to care for children and/or other family members.

Women also report less confidence than men when it comes to retiring, even though women tend to fare better when it comes to mental health and being socially connected in retirement.

Are you not getting your super? Contact your AWU delegate, or join your union!

What else affects my super?

The gender pay gap – the difference in the average earnings of women and men in the workforce – contributes to Australian women’s lower incomes and therefore superannuation, with many work areas and industries traditionally dominated by women providing lower-paid jobs.

Superannuation payments are also not mandatory during parental leave, either paid or unpaid, and when women return to work after taking that leave they are more likely to take up part-time roles.

With one in three marriages ending in divorce, single women are also particularly vulnerable to poverty in retirement.

But what can I do?

There are a few things you can do to maximise your super.

First, make sure your employer is paying your compulsory Superannuation Guarantee (SG) contributions.

By law, your employer must pay a minimum 10.5% SG contribution (of your ordinary-time earnings) into your nominated or default super fund. This is not taken out of your wages, but paid on top of your salary.

Next, if you have more than one super fund, consolidate them into a single fund, as this can dramatically reduce the money you lose to account fees.

And choose a super fund and investment strategy that is best for you.

There are significant differences between funds in terms of returns and fees. For example, industry funds are not-for-profit funds run only to benefit members, not shareholders. They usually have low fees, deliver strong, long-term returns and consistently out-perform retail funds (such as those run by the big banks). So do your research, especially on fees and charges.

Need to know more? You can go here to read more about super and how it works.

And not getting your super, or not sure? Contact your AWU delegate, or join your union!