Part-timers warned to top up super
NorwichUnion Lifehas urged part-time workers to top up their superannuation to ensure they are not disadvantaged when it comes to retirement.
According to Norwich, there are currently 1.5 million women and 566,000 men working part time and therefore receiving superannuation contributions based on a reduced salary.
Norwich Union Life managing director Allan Griffiths says: “There are a lot of people choosing to work part time for many different reasons, but it’s essential that long-term financial needs are thought about when this decision is made. Consider this — when you halve your salary you also halve your super.”
Because of their high levels of participation in part-time work, women are particularly at risk of retiring without enough super, Norwich says.
And with many women expected to outlive their spouse, they require more funds to last through their retirement.
Figures released by the Australian Bureau of Statistics show that only 25 per cent of part-time workers are likely to make personal contributions to super, compared with 55 per cent of full-time employees.
“This is a worrying trend. Superannuation is something that needs to be considered by every individual. When anyone decides to become a part-time worker they should also think about topping up their personal super contributions — at least to the equivalent of their full time salary,” Griffiths says.
AUTHOR
Freya Purnell
Recommended for you
ASIC has said it is exploring whether there are concerns regarding Macquarie and Equity Trustees for hosting platforms where investors rolled over their superannuation into the Shield Master Fund.
Rhombus Advisory and WT Financial Group are among the AFSLs seeing adviser declines this week, as only three new entrants join the profession.
Strategic technology integration and clearly defined advice propositions are two critical elements for building a successfully scaled advice model, Adviser Ratings unpacks.
National advice licensee PictureWealth has appointed John Bezich in a newly created role of head of advice.
