Superannuation is important for all women, but probably even more so for Stay At Home Mums (SAHMs). Having a break from paid work reduces our ability to contribute to our super leaving us much worse off than others when it comes to retirement age.
There are a few things that you can do to boost your super as a SAHM:
Small contributions go a long way
The first step to making sure retirement savings stay on track is to find room in the family budget for even the smallest regular contribution into super. This can make a significant difference to super balances in the long term thanks to the power of compound interest.
Start spouse contributions
This is a worthwhile strategy for those women that earn less than their spouse to build their retirement savings together. The spouse can make contributions to their partner’s super on their behalf and receive an 18 per cent tax offset (up to $540).
Take advantage of co-contribution
Anyone earning less than $33,516 a year who makes a contribution to their super fund is eligible to get a tax-free cash boost of up to $500 into super through the Federal Government’s co-contribution scheme.
Wise up financially
Get your super statements out and look at how much you have in your super account and, importantly, how it is invested. Consider your options and whether you can afford to tick the box for a more growth-oriented investment strategy. Contact your super fund to find out about your asset allocation or speak to a qualified financial planner.
On average Australians have 3.5 super accounts each. Consolidating multiple super funds into a single account will keep fees to a minimum and mean more of your money is working for you.
AustralianSuper can make all the difference to your super savings
They’re one of Australia’s largest industry funds with more than 2 million members. They use their size and strength to negotiate low fees and their profits are returned to their members, not shareholders.
Find out more about how AustralianSuper can help you get your super sorted here.