By LISA MITCHELL
I loved visiting my grandmother when I was a little girl. She always gave us the biggest hugs, she cooked the best veal schnitzel I’ve ever tasted in my life and she always gave us $5 for no reason whatsoever.
Not that I ever expected it or anything.
She was lucky to have enough money to retire on and as a result, spent her twilight years living the dream, which for her was tending to her garden, cooking for the family and buying the really good parmesan cheese at her local deli.
When I look forward to my own retirement, I don’t see the same lifestyle being possible because I am way behind where I should be when it comes to superannuation, for a number of reasons.
I was behind before I started because I earn much less than my husband. Then I had a portion released to pay some urgent bills.
That was a huge mistake.
Add to that the time I took out of the workforce to have my three children and I’m well and truly behind. Then add the fact that I returned to work each time part-time.
The hits keep coming.
When I took time out to have my children, it never occurred to me to consider my superannuation. This is the case for many Australian women.
Just as an FYI, this post is sponsored by HOSTPLUS Super. But all opinions expressed by the author are 100% authentic and written in their own words.
All that time out of the workforce means no contributions towards our retirement. Women are already lagging behind in superannuation savings due to the fact we earn less than men. Sandy Wilson from HOSTPLUS Super Fund confirmed this when she told me, “there is a gender pay gap which means females get paid on average 17.5% less than males, this impacts what they receive in their super because this is calculated as a % of their pay.’
Top Comments
There are many factors can be looked at a Superfund before you decide.
1. Employer plans - Generally it has been observed that employer plans have better bargain in terms of fee and insurance coverage. Having said that one should compare their default employer plan if they are switching to new employer.
2. Underlying fund performance - Employer plan may look better interms of fees but they are generally invested in a default investment options like Lifestage funds. Lifestage funds will reduce investment risk based on the increasing age. It tends to be aggressive in initial years of member. One should look at the investment options performance in last 3 years. That gives you a enough idea. You can switch to choice based funds if you fee that default investment options are not offering enough returns.
3. Insurance coverage and premium - it depends on fund how they are dealing with Insurance. One should compare his or her insurance needs. Super insurance can be cost effective due to Group insurance nature. One should ask for increase or decrease insurance based on the personal need. That will allow you get best out of Super insurance.
4. Technology and ease - How easier is to keep a track of your super fund.
5. Consult - Consult with your financial adviser if you are not sure. But I would prefer DIY.
superannuation is not the only way to ensure a financially sound future. From my perspective, building other assets such a side business (online or offline) can be a great asset when your grow old.