The ATO is encouraging women to take an active interest in their superannuation to help overcome the retirement-savings shortfall many are experiencing. Speaking at the Women’s Super Summit in February, Assistant Commissioner Megan Yong said she wants to encourage women to start thinking about their super.
‘It’s never too late for women to start learning about all sorts of practical things they can do to make a difference to their super over time,’ Assistant Commissioner Yong said. ‘And it’s something we do need to look at. On average, Australian women currently retire with super account balances of just $112,600*.
‘That’s much less than the amount a single woman needs for a $40,000-a-year retirement income, which is at the lower end of the ‘what’s adequate’ scale.
‘It surprises a lot of people that putting the equivalent cost of one cup of coffee a day into your super can add up to an extra $128,000 when you retire**’, she said.
Megan encourages women to go online to ato.gov.au/5stepsuper and do the ATO’s five-step super check. ‘The five-step super check walks you through what you need to do, including checking your statements to make sure you are getting everything to which you’re entitled, that your super fund has your tax file number so you don’t pay too much tax, and determining if you are entitled to a government super contribution.
‘You can also use SuperSeeker – part of the ATO’s online services – to make locating and managing your super easier.
‘Most importantly, put whatever extra you can afford into your account. As the cup of coffee example demonstrates, it can pay you back many times over.’
* An assessment of super balances by the Association of Superannuation Funds of Australia 2009–10
** Based on a 30-year-old female investing $3.80 per day into a moderate fund and assuming 5% growth over a 35-year period. Source: http://www.superguru.com.au.
