[cs_content][cs_section parallax=”false” style=”margin: 0px;padding: 0 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]This week I wanted to share my answer to an “Ask Tash” question that was raised by one of the members of our Women with Cents community:
“My husband thinks that putting our money into super isn’t worth it. What’s your opinion?”
Well, I can tell you that your husband is certainly not alone. The vast majority of Australians make the very common mistake of not considering super as their own money. But not paying attention to your super account isn’t a very wise decision for your financial future – and here’s why.[/cs_text][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 0 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h2″ looks_like=”h3″ accent=”false”]How much do we need to retire?[/x_custom_headline][cs_text class=”cs-ta-left”]Today, most Aussies don’t have enough super to retire on, they rely on Government funded pensions. But pensions are being reduced and the restrictions on who is eligible are getting tighter. Plus, medical advancements mean we’re living longer lives than our parents did. So how much money will we need to retire? Here are some interesting stats:
[/cs_text][x_image type=”none” src=”http://www.womenwithcents.com.au/wp-content/uploads/2016/04/Retirement-table.png” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][cs_text class=”cs-ta-left”]That shortfall adds up to about $20-$30k per year!
According to ASFA this equates to needing approximately a $545,000 super balance at retirement for singles and $640,000 for couples (assuming a partial Age Pension). However, the ABS reported that the average super balances at retirement in 2011-12 were $105,000 for women and $197,000 for men.
That’s a pretty big gap, right?
[/cs_text][/cs_column][/cs_row][/cs_section][cs_section bg_color=”#252525″ parallax=”false” style=”margin: 0px;padding: 0 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h2″ looks_like=”h3″ accent=”false” style=”color: rgb(255, 140, 0);”]Why paying more into your super now can pay off later[/x_custom_headline][cs_text]
Making additional contributions to your super is an excellent way to increase your balance over time (bearing in mind the contributions caps). The sooner you can start making additional contributions the longer the money is invested for – giving you the opportunity to experience the benefits of compounding!
[/cs_text][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 0 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h2″ looks_like=”h3″ accent=”false” style=”color: rgb(255, 140, 0);”]The tax benefits of investing through super[/x_custom_headline][cs_text]Investing through super can also be a very tax effective way to save for retirement, as your investments in super are taxed at 15%, while currently anything held outside of super once you earn over $18,200 a year is taxed at 19% and up, plus 2% Medicare levy.[/cs_text][x_custom_headline level=”h2″ looks_like=”h3″ accent=”false” style=”color: rgb(255, 140, 0);”]But always seek advice first…[/x_custom_headline][cs_text]Having said all that, your goals, risk profile and time to retirement are important too. Once your money is in super you can’t touch it until you reach retirement age, so that is an important factor to consider.
If you need help weighing up the pros and cons, a financial planner and our Women with Cents community can help.[/cs_text][/cs_column][/cs_row][/cs_section][cs_section bg_color=”rgb(37, 37, 37)” parallax=”false” style=”margin: 0px;padding: 0 0px 25px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h2″ looks_like=”h3″ accent=”false”]Submit a Question![/x_custom_headline][cs_text]Have a finance question you’d like answered? Why not drop me a line! Each week I would love to answer a question from the community. Click below to get in touch.[/cs_text][x_button size=”global” block=”false” circle=”false” icon_only=”false” href=”mailto:tash@womenwithcents.com.au” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””]ASK TASH[/x_button][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 25px 0px 0;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://www.womenwithcents.com.au/wp-content/uploads/2016/07/Email-photo.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text style=”font-size:12px;”]The information provided by Women with Cents is general in nature. It doesn’t take into account your objectives, personal financial situation or needs. Think of it as educational material in which to help you make more-informed decisions. We recommend you obtain financial, tax and credit advice specific to your situation before making any investments or financial decisions.
Sova Financial Pty Ltd Trading as Women with Cents. ABN 71 163 435 836 | Sova Financial is an authorised Credit Representative Number 443432 of Finsure Finance & Insurance Pty Ltd, ACL 384704, ABN 72 068 153 926[/cs_text][/cs_column][/cs_row][/cs_section][/cs_content]
