Super for Women
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Important notice Any advice in this presentation has been prepared without taking into account your objectives, financial situation and needs. You should consider whether it is appropriate having regard to your personal circumstances before making any financial decisions. If you are considering acquiring a financial product you should obtain the relevant product disclosure statement before making any decision. Any information about taxation in this presentation is factual information or general advice only and does not consider the application or interpretation of any taxation laws to your personal circumstances. If you require taxation advice you should seek advice from a registered tax agent or a registered tax (financial) adviser.
Current as at April 26, 2016. This work is copyright and no part may be reproduced by any process without prior written permission from Telstra Super.
Super for Women Kate Misic Head of Alternative Investments Zoe Brinsden Head of Comprehensive Advice for Victoria and South Australia, Telstra Super Financial Planning Renee Rowe Key Employer Partner, Member Education & Partnership Relations
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Agenda • Facts about women in super • Issues typically affecting women • Gender Gap • Key steps • Telstra Super
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Facts about Women and Super 250,000 working Australians miss out on super as they earn less than $450/month
1 in 5 women cite lack of time as the main reason they haven’t sorted their super
Super for Women 90% of women will retire with inadequate savings to fund a ‘comfortable lifestyle’
1 in 3 women will retire with no super at all
Average super balances at retirement is less than half that of men
Source: http://www.superguru.com.au/about-super/women-and-super/
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Issues typically affecting Women
Gender pay gap: Women earn a fifth less than men Part-time and casual work Interruptions in working life: Care for children Often finish work earlier in life: Care for elderly parents Live longer than men ďƒ Women live longer with less
Source: https://www.wgea.gov.au/sites/deafult/files/Gender_pay_and_superannuation_gaps_by_age_group.pdf
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Gender Gap
Average Super Balances (2013/2014) Average Balances at Retirementâ€
Average Balances*
Male
Female
Male
Female
$292,500
$138,150
$98,530
$54,900
* Achieved in 2013/2014 for all people 15 years and over †Assumed to be retiring between 60-64 years of age Source: http://www.superannuation.asn.au/ArticleDocuments/1089/ASFA_Super-account-balances_Dec2015.pdf.aspx
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Key steps which could improve retirement outcomes
Check your superannuation savings Consolidate multiple super accounts Plan to save more
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Planning for financial independence earlier in life
Super ‘baby debt’ Multiple jobs, potential loss of SG
Impact of compounding
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Government co-contribution
Salary sacrifice
You
Your Super
Government
earn less than $50,454
post-tax contributions up to $1,000
receive a cocontribution up to $500
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Spouse contribution
Salary sacrifice
Your Spouse
Your super
Tax offset
Contribute up to $3,000
if you earn up to $13,800*
of $540 or 18% of $3,000 contributed
* A partial offset is available if your spouse’s income is over $10,800 but less than $13,800 p.a.
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Contributions splitting Up to 85% of your spouse’s pre-tax contributions to super can be split into your super
$100 Pre-tax contribution
$15 tax
Up to $85 into your super
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Issues typically affecting women later in life • Women are fastest growing single households over the age of 60 (1) - Lifestyle choice - Divorce - Women living longer than men • Women more likely to be full age pensioners (2) • 35% of people over the age of 65 are living in poverty (3)
(1) ABS Household and Family Projections, 2006 to 2031 (2) COTA Australia, Inquiry into Economic Security for Women in Retirement, December 2015 (3) ACOSS, Poverty in Australia 2014
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How much is enough? Single ASFA Retirement standard income p.a.
(maximum age pension is $22,721 p.a.)
$23,797
$43,184
Couple
(maximum age pension is $34,252 p.a.)
$34,226
$640,000 +part Age Pension
$545,000 +part Age Pension
Lump sum required to fund income
$50,000 +Age Pension*
Modest
$59,236
$35,000 +Age Pension* Comfortable
Modest
Comfortable
Source: ASFA Retirement Standard December 2015. Capital required assumes a net investment return of 7% p.a. www.humanservices.gov.au 20 March 2016. Includes the pension supplement and clean energy supplement. All figures in today’s dollars. *assumes maximum Age Pension.
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Retirement Planning later in life
Contribution splitting Contribution splitting
Take Financial Control
Maintaining adequate investment Maintaining choice adequateEducate investment daughters choice
Educate daughters
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How can Telstra Super help? Member Education: presentations & on-site visits
Telstra Super
Limited Advice Team
Telstra Super Financial Planning
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Simple steps that may improve retirement outcomes
Become confident about super: Take control Be proactive Be informed Call us
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Review your investment strategy
What’s next? www.telstrasuper.com.au 1300 033 166 talkingsense@telstrasuper.com.au
Access accounts online
Nominate your beneficiary
Discuss your options with Telstra Super
Seek Advice
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Current as at April 26, 2016. This work is copyright and no part may be reproduced by any process without prior written permission from Telstra Super.