WA Super News
Triple the stress for women, but most super balances are too low
With many women earning generally less than men, having career breaks or working part-time for their kids, it’s probably no surprise that they may feel financially vulnerable. On top of that, women typically live longer than men; so it’s a triple whammy of possible financial stress factors.
According to our recent Who’s the Bo$$ survey published in the West Australian, two in five respondents don’t feel confident about their financial security, and nearly one in three don’t even feel they have enough spare cash for a rainy day. But it’s the women who are more concerned about money matters than men, with nearly 50% of women worrying at least weekly, compared to 40% men. And rightly so.
When it comes to superannuation, according to the Association of Superannuation Funds of Australia (ASFA), the average super balances at the time of retirement were $270,710* for men and $157,050* for women. These amounts fall well short of the ASFA Retirement Standard, which proposes that a single person needs $545,000 for a comfortable retirement or a combined $640,000 for couples. Bearing in mind, both scenarios assume you own your home.
So to achieve this financial goal, we asked respondents whether they believed the 9.5% employer super guarantee was enough to fund a comfortable retirement. Predictably, over 50% of both men and women agreed that the 9.5% won’t be enough to fund their retirement dreams.
All these facts and figures are not boding well for female Western Australians. But they know it. Which is why according to the survey, they are over three times more likely to feel they will need to rely on their partner’s financial support.
Employer role when it comes to financial well-being. Financial stress can have a huge image on how engaged your staff are. Consequently, assisting employees to become financially secure means they have fewer distractions and are more productive.
As we start to set goals for a new year, it is timely to remind your staff to look at their super and follow these 5 simple tips to reduce financial stress and help boost it in 2019. If they start today – doing something now will make a big difference in the future – thanks to the power of compound interest! Here are 5 ideas to share with your staff:
Get a ‘status’ update on all their super accounts: know how much they have and whether they are on track?
Get advice from WA Super through our award winning Simple Super Advice service for no extra cost!
Find lost super and combine accounts so they don’t pay extra fees.
Add extra money when they can and check if they are eligible for any extra help from the Government.
Consider spouse contribution or co-contributions if they work part time.
We’re here to help
If you or any of your staff have any questions, please call us on 08 9480 3500 or email the team at email@example.com.
Source:*ASFA - Superannuation account balances by age and gender - October 2017
¹Financial Wellbeing- The Missing Piece in the Employee Wellbeing Picture. Paul Barrett The Work Foundation 2014