The gender gap is still clear when it comes to superannuation, with latest data from the ABS* showing that on average, men retire with 80% more superannuation savings than women. That’s a big difference, a difference that makes it more likely for women to have to rely on Government pensions than men.
In the 55-64 age group, men have 79% more super than women, while in the 30-34 age group men already have 70% more super saved. And overall, men hold 64% of total super balances and receive 65% of tax concessions given to super members.
Interestingly, the average AvSuper balance is $242,000 for men and $141,000 for women, both being higher than average for Australia. You can find more statistics on super between the genders on our super for women page.
So what can we do about it?
While there is little we can do to reduce the gender gap in the short term as individuals – changes to legislation for concessions and societal changes for equal wages will take bigger effort – there are things we can do for ourselves and for all the women in our lives.
- talk to the women in your life to ensure they understand the basics of super and building a long-term financial future.
- remember that a man is not a financial plan – women need to build up their own savings, too.
- make personal contributions – and encourage others to do the same. At AvSuper it’s easy – make ad hoc contributions to our bank account and tell us via our online form, or set up regular payments via your employer or banking facility.
- if you’re part of a couple, look into spouse contributions and the related tax offset as a possible way to even up your retirement savings.
- talk to an AvSuper Member Advice Consultant to maximise your options, whether it is a different investment strategy or the most effective way to make contributions in your current circumstances.
* Australian Bureau of Statistics “Superannuation account balances by age and gender” December 2015
AvSuper members have started receiving their annual statements and the AvSuper Trustee Report.
As always, we recommend you read both documents carefully and then contact us with any questions you may have. Our annual report includes information about our investment performance and investment markets generally, as well as giving you updates on our insurance option and spouse accounts.
If you have requested hard copies and they have not yet arrived*, you can view them online while you wait. Of course, if they do not arrive within the next week, please let us know so we can check your contact details are correct before reissuing your statement.
∗ All members can choose to receive their statements and/or annual report electronically – simply log into Member Online to check and update your preferences under the ‘member details’ tab.
We are very pleased to announce members will be able to electronically access their accounts from our Canberra office as of today!
There will be an iPad in our Canberra foyer (just across the plaza from Airservices Australia reception) so that members can log into Member Online to check their account or make some changes (such as an investment switch, insurance application or update contact details).
We expect this to be particularly useful for members without private access to a computer at work and those wanting help with using Member Online – our Member Advice Consultants can join you in the foyer to talk about accessing and managing your account.
So any time you are in Canberra, come along and check your account in our office, and say hello while you’re here!
The Government released its federal Budget on Tuesday, 3 May 2016.
We have again prepared a fact sheet outlining the main super changes proposed in the Budget along with a commentary on how those changes may impact AvSuper members.
The impact for you
With over a dozen super-related proposals in the Budget, the proposed changes may have a significant effect on some members. Some of the key changes include
- reductions on the amount of money you can contribute to super, especially at concessional tax rates
- introduction of a “cap” on the amount of money you can transfer to an income stream (pension) account at retirement
- lowering the income threshold for high income earners (from $300,000 pa to $250,000 pa) where the contribution tax rate changes from 15% to 30%
- removal of the “work test” for older members.
The scope of the proposed changes is such that different groups of members are likely to be impacted in different ways so it is important to review the Budget, and the related legislation as things progress, in line with your personal situation.
Before making major decisions about your super and/or retirement income stream, please remember these changes are not yet law and may well be altered and delayed. We suggest you get personalised advice from our Member Advice Consultants to better understand your options and their implications.