ATO urges women to think super
Australian Taxation Office (ATO) Assistant Commissioner Megan Yong has urged women to think about their super to help overcome the retirement savings shortfall many are currently experiencing.
Speaking at the Women’s Super Summit, Yong said on average Australian women currently retire with a super account balance of $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,” she added.
Yong said it is never too late for women to implement pragmatic solutions that will assist them in building their retirement savings, with a number of ideas targeted at closing the gender gap in super savings discussed at the summit.
“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.
Yong encourages women to use online tools such as the ATO’s 5-step super check, which explains super in plain language and provides women with practical steps to improve their retirement incomes in the long term.
“The 5-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,” she said.
As owning several super accounts may mean higher fees and charges are reducing an overall super investment, Yong also suggests women use SuperSeeker - part of the ATO’s online services - which makes locating and managing 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,” she advises.
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