Mums tend to be disadvantaged when it comes to their super and planning for retirement. Many mums spend their prime working years taking care of children, while also earning less money when working and living longer lives than men. When you combine these few factors, it’s easy to see how women tend to have less money saved for retirement and how that money has to be stretched for a longer period of time.
So what can mums do alleviate these issues? Today, we’re going to learn how mums can maximise their super. There are strategies and options for mums, so let’s get started!
All it takes is a few hours a year to sit down and go over your superannuation. During this review, make sure contributions are automatic so you can “set it and forget it”. You’re busy…make things as easy as possible for you while your super can grow.
Go over your yearly statements to make sure they are accurate. You don’t want to find out that contributions weren’t accurately made or that you’ve been paying more fees than necessary. This is also the perfect time to determine if your super offers protections for accidents and illnesses. No matter how much your contribute financially to your household, you run the ship so you want to make sure you’re protected in the event something happens.
You can make more voluntary contributions during your working years. For example, if you decided to stay home with your children for a few years, you can opt to sacrifice more of your salary to go towards your super to help get you caught up. This strategy can help keep you caught up and not leave you financially short handed when you retire.
Even if you’re not working, you can opt to contribute to your super voluntarily. You can make these contributions from money you earn as a side job, from a business, family tax benefits, gifts or any additional informal income.
Your spouse can also contribute to your super. There are a couple of different ways to do this. The first way is to make contributions from salary after tax. The other way is to have your spouse split their contribution so that a portion goes to you.
As you can see, mums have plenty of strategies to choose from when it comes to staying on top of your super and not being left with insufficient funds during your retirement years. Working with a superannuation professional is also a good strategy to ensure you’re making the most out of your retirement goals.