Career breaks to raise children or look after elderly parents, as well as higher instances of part time work mean that Australian women are retiring with an average Superannuation balance less than half of men. [1]

The AFSA Retirement Standard figures show average Superannuation balances for women at the time of retirement sit at $138,150 compared to $292,500 for men (2014/14).[2] The Standard recommends that $545,000 in Superannuation is required for a single person to be able to live a comfortable retirement.[3]

While these are sobering statistics for Australian women, there are strategies you can put in place to boost your Super.

Here we share some tips which can help you grow your Super while you grow your family:

Perhaps the most important tip for anyone when it comes to Superannuation is to start early. Making extra concessional contributions while you are working means you can make the most of compounding returns.
Consolidate your Super. While it sounds simple, the average Australian has over three Superannuation accounts [4] which could end up costing you thousands over your working life by reducing your compound interest returns. Paying multiple administration fees and charges associated with more than one Super account can also reduce your investment potential.
If you are taking a career break you may want to consider implementing spouse Super contributions to continue to grow your Super while you are out of the workforce.
Make the most of your Super investments. Around 80% of Australians with Super accounts have their money invested in the default investment option of their Super funds. The default investment option is usually a ‘balanced’ or ‘growth’ investment option.[5] There are many investment choices you can make which may be more appropriate for your circumstances and risk profile.
Review the performance of your Super fund against other funds to see if you could potentially be earning greater investment returns.

If you want to know how a career break will affect your Super balance, test out the ASIC Career Break Super Calculator

Seeking professional advice is important to make the most of your personal circumstances. If you would like to know more about your financial independence, please contact us on (07) 3720 1299 or email admin@wealthfundamentals.com.au

[1] https://superannuation.asn.au/media-release-8-december-2015
[2] https://superannuation.asn.au/media-release-8-december-2015
[3] http://www.superannuation.asn.au/media-release-2-june-2016
[4] http://www.superguide.com.au/accessing-superannuation/find-lost-super
[5] http://www.superguide.com.au/boost-your-superannuation/investment-performance-were-the-best-super-fund-no-were-the-best

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