Women and super - making extra contributions

ESSSuper - 04 Mar 2021

Why the gender gap?

There's a whole range of reasons why many women end up with less super than men. Despite recent progress, Australia still has a gender pay gap that puts women 14% behind men,^* which affects the rate of super they accrue. During their working lives, women are much more likely to experience interruptions to their career. Many are the primary carer and may take leave or work part-time for extended periods to raise a family. Time out of the workforce not only has a significant impact on superannuation savings; it can also slow career progression and future earnings potential. All this is intensified by the fact that women also have a longer life expectancy than men.^**

While the statistics are cause for concern, the good news is that as a member of ESSSuper, you're likely to have a higher super balance than the average Australian.^† For example, if you're part of our ESSS Defined Benefit fund and take unpaid parental leave, you may be able to elect a notional contribution rate in the first 12 months.^‡ That could put you in a better position than most women to have the lifestyle you want when you retire.

So what can you do?

Know where you stand
The most important steps you can take are understanding how much super you have and how you can increase your savings. We're serious about helping women achieve a comfortable retirement and have developed a range of resources to assist.

Our website is a great place to start, with information and easy-to-use online tools to help you stay on top of your super. These include:

• Calculators – Find out things like: how much super you may have when you retire, whether you'll reach your maximum multiple, how much insurance cover you may need and the associated costs, and more.
• Videos – We have short, informative videos covering a range of topics including the importance of beneficiaries, how super works… and one about women and super!
• Fact sheets – Our publications include fact sheets that cover many of the questions you might have: information about super when a loved one dies, access to your super at other times, and other useful information.

You can log into Members Online at any time to check your current super benefit. From here you can access AssistMe, a smart, interactive tool that forecasts what your retirement income may be, and how changing certain factors today can impact that retirement income. AssistMe also provides a wealth of information and other resources to explain the ins and outs of super and provides insights into planning your retirement.

Every little bit extra helps
If you've had different jobs over your career, you may well have some lost super. The Australian Taxation Office's (ATO) online Manage my super tool can help you quickly reunite any lost super you may have. Consolidating your super can help you save on fees. Simply log into your myGov account and click on Manage my super – it only takes a few minutes and there's no paperwork.

Any amount that you contribute to your super at any time in your working life will help increase your final benefit. There are a few different ways to do this, depending on the account you have. We've written a whole article to help you, so read New year, new… super contributions! to learn more.

If you're currently taking a career break or working part-time, you may be able to take advantage of spouse contributions or the Government co-contribution scheme. These may both be tax-effective ways to boost the super savings of low-income earners. Our website has more information about growing your super.

We're here for you

In addition to the online resources mentioned previously, we run regular and informative webinars to help you make informed decisions about your super in the comfort of your home. Or if you prefer, you can arrange a one-to-one virtual appointment with a Member Education Consultant.

^* Source: Australia's Gender Pay Gap Statistics 2021 (published 26 February 2021), wgea.gov.au/publications/australias-gender-pay-gap-statistics

^** Source: Deaths in Australia, aihw.gov.au/reports/life-expectancy-death/deaths-in-australia/contents/life-expectancy

^† ESSSuper video: Women In Super

^‡ During this time, you can accrue contribution arrears (funded by your employer) and interest (if applicable) which will need to be paid on return to work. Eligibility conditions and limitations apply, so please contact us for more information.

There are maximum limits on before and after tax contributions which are set by the Government, and if these limits are exceeded you may be liable for additional tax. It is important that you monitor your contribution levels as they may change from year to year. Please read the Product Disclosure Statement relevant to your particular fund, available from ESSSuper, for more information. Insurance cover is subject to eligibility criteria and other terms and conditions in the Policy. Please read the Accumulation Plan Product Disclosure Statement relevant to your particular fund, available from ESSSuper, for more information. You should check any insurance arrangements that may be forfeited, or any other effects this transfer may have on your benefits, before rolling your money into our fund.

Emergency Services Superannuation Board (ABN 28 161 296 741), the Trustee of the Emergency Services Superannuation Scheme (ABN 85 894 637 037) (ESSSuper).

The information contained in this article is of a general nature only. It should not be considered as a substitute for reading ESSSuper’s Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by calling 1300 650 161.