1 00:00:00,560 --> 00:00:04,439 Speaker 1: The fifty thousand dollars superannuation gap, why women are retiring 2 00:00:04,480 --> 00:00:16,320 Speaker 1: with less, and more importantly, how we can start closing it. Today. 3 00:00:23,200 --> 00:00:26,120 Speaker 1: Good morning everyone, and welcome back to Sugar Mamma's Fireplaying. 4 00:00:26,280 --> 00:00:28,160 Speaker 1: As you know, this is the podcast where we talk 5 00:00:28,160 --> 00:00:33,000 Speaker 1: about building financial independence, creating passive income streams, and building 6 00:00:33,000 --> 00:00:36,160 Speaker 1: a life that gives us freedom, choice and long term 7 00:00:36,200 --> 00:00:40,760 Speaker 1: financial security. Now today, I am ironically it's quite fitting 8 00:00:40,760 --> 00:00:43,599 Speaker 1: for this topic this morning. I am actually working from 9 00:00:43,600 --> 00:00:46,400 Speaker 1: home today, I am not recording in the studio, So 10 00:00:46,440 --> 00:00:49,000 Speaker 1: if there's a bit of a funny background sound, it's 11 00:00:49,040 --> 00:00:52,600 Speaker 1: because my daughter is sick from school. She has foot 12 00:00:52,640 --> 00:00:54,440 Speaker 1: and mouth disease. So if you hear a television in 13 00:00:54,440 --> 00:00:56,400 Speaker 1: the background, you hear a little human voice and even 14 00:00:56,440 --> 00:00:59,200 Speaker 1: the dogs barking. I've had to come home to look 15 00:00:59,240 --> 00:01:02,560 Speaker 1: after her. So it's actually very fitting for today's topic 16 00:01:02,600 --> 00:01:05,920 Speaker 1: because we're actually celebrating International Women's Day and now, as 17 00:01:05,920 --> 00:01:09,280 Speaker 1: you know, this takes place every single year on March 18 00:01:09,440 --> 00:01:11,440 Speaker 1: the eighth, and it's you know, a day where we 19 00:01:11,560 --> 00:01:14,880 Speaker 1: celebrate the achievements of women around the world, you know, 20 00:01:14,959 --> 00:01:19,080 Speaker 1: in business, leadership, medicine, science, sport and community, and of 21 00:01:19,120 --> 00:01:22,160 Speaker 1: course like everyday family life, and it's also a day 22 00:01:22,160 --> 00:01:25,440 Speaker 1: that reminds us that there is still important work to 23 00:01:25,560 --> 00:01:29,720 Speaker 1: be done, particularly when it comes to financial quality. And 24 00:01:29,880 --> 00:01:32,880 Speaker 1: one of the clearest examples of this inequality is something 25 00:01:32,920 --> 00:01:37,399 Speaker 1: called the superannuation gender gap. So right now in Australia, 26 00:01:37,600 --> 00:01:42,400 Speaker 1: women are retiring with significantly less superanneration than men. On average. 27 00:01:42,480 --> 00:01:46,080 Speaker 1: The gap is supposed to be around fifty thousand dollars, 28 00:01:46,080 --> 00:01:48,680 Speaker 1: but I suspect it's actually a lot more, And of 29 00:01:48,680 --> 00:01:51,600 Speaker 1: course it depends on the circumstances, but I really do 30 00:01:51,800 --> 00:01:55,160 Speaker 1: worry that it's actually much larger. And you know, whether 31 00:01:55,160 --> 00:01:57,080 Speaker 1: it's big or small, the fact that there is a 32 00:01:57,120 --> 00:02:01,920 Speaker 1: gap matters enormously because innuation is designed to fund like 33 00:02:02,120 --> 00:02:06,920 Speaker 1: decades of retirement, you know, living expenses, you know, when 34 00:02:06,960 --> 00:02:09,120 Speaker 1: we stop working, and we don't actually have that ability 35 00:02:09,200 --> 00:02:12,800 Speaker 1: necessarily to actually earn money from working. So it's really 36 00:02:12,840 --> 00:02:15,400 Speaker 1: important if we want to be able to retire securely 37 00:02:15,520 --> 00:02:19,320 Speaker 1: and safely. So in today's episode, I want to explain 38 00:02:19,400 --> 00:02:23,320 Speaker 1: why this gap exists and why it is really concerning, 39 00:02:23,600 --> 00:02:26,079 Speaker 1: and what are the changes that are already being made 40 00:02:26,200 --> 00:02:29,240 Speaker 1: within our system to help fix it. But more importantly, 41 00:02:29,280 --> 00:02:31,480 Speaker 1: I want to talk about some of the practical steps 42 00:02:31,480 --> 00:02:35,480 Speaker 1: that women can take today in their financial management, whether 43 00:02:35,480 --> 00:02:38,239 Speaker 1: you're approaching retirement or even if you've just started working 44 00:02:38,320 --> 00:02:41,320 Speaker 1: and earning a living. So this episode is not about discouragement. 45 00:02:41,360 --> 00:02:45,400 Speaker 1: It's very much about education, empowerment, and practical solutions that 46 00:02:45,440 --> 00:02:48,240 Speaker 1: we can sink our teeth in right now to help 47 00:02:48,320 --> 00:02:51,440 Speaker 1: close this gap and obviously inspiring other women along the 48 00:02:51,440 --> 00:02:55,040 Speaker 1: way to do something for themselves as well. So before 49 00:02:55,080 --> 00:02:57,400 Speaker 1: we go to the superannuation gap, I just want to 50 00:02:57,400 --> 00:02:59,840 Speaker 1: take a moment to understand and share with you why 51 00:03:00,040 --> 00:03:04,160 Speaker 1: International Women's Day exists in the first place. International Women's 52 00:03:04,200 --> 00:03:07,200 Speaker 1: Day dates back to the early nineteen hundreds, which I 53 00:03:07,200 --> 00:03:09,560 Speaker 1: thought was really interesting. It's where women around the world 54 00:03:09,720 --> 00:03:14,040 Speaker 1: began campaigning for basic right now. These rights included things 55 00:03:14,080 --> 00:03:17,040 Speaker 1: like the right to vote, fair working conditions, equal pay, 56 00:03:17,080 --> 00:03:20,799 Speaker 1: the ability to participate fully in economic life, the things 57 00:03:20,800 --> 00:03:22,960 Speaker 1: that we really enjoy today that we can thank these 58 00:03:23,000 --> 00:03:25,919 Speaker 1: previous women for fighting for us. And the first official 59 00:03:26,000 --> 00:03:29,400 Speaker 1: International Women's Day was actually celebrated in nineteen eleven, and 60 00:03:29,440 --> 00:03:34,440 Speaker 1: today it is recognized by more than one hundred countries worldwide, 61 00:03:34,560 --> 00:03:37,360 Speaker 1: and over time this day has evolved into both a 62 00:03:37,440 --> 00:03:40,880 Speaker 1: celebration and a reflection point, and it's a celebration of 63 00:03:40,920 --> 00:03:44,120 Speaker 1: the progress, but also a really important moment to acknowledge 64 00:03:44,160 --> 00:03:47,520 Speaker 1: the areas where inequality still exists and there is more 65 00:03:47,680 --> 00:03:50,280 Speaker 1: work to be done. And in this case, right now, 66 00:03:50,320 --> 00:03:53,960 Speaker 1: this conversation that is this is around the financial security 67 00:03:54,040 --> 00:03:58,440 Speaker 1: for women in retirement. Now, the reality of superannuation today 68 00:03:58,600 --> 00:04:01,720 Speaker 1: is that in Australia, women are retiring with around twenty 69 00:04:01,760 --> 00:04:06,360 Speaker 1: five percent less superannuation than men. In dollar terms, it 70 00:04:06,440 --> 00:04:09,320 Speaker 1: is often around fifty thousand dollars less, and in some 71 00:04:09,360 --> 00:04:12,000 Speaker 1: cases that gap can be even larger, which is what 72 00:04:12,040 --> 00:04:14,640 Speaker 1: I suspect. And at the same time, we've also got 73 00:04:14,680 --> 00:04:19,440 Speaker 1: women living longer than men on average, around four years longer. 74 00:04:19,920 --> 00:04:21,920 Speaker 1: So we've got a bit of a double whammy here. 75 00:04:22,040 --> 00:04:26,320 Speaker 1: We've got women needing more money in retirement to be 76 00:04:26,360 --> 00:04:30,720 Speaker 1: able to survive longer, not less. So why does this 77 00:04:30,920 --> 00:04:34,159 Speaker 1: gap exist in the first place. The reality is that 78 00:04:34,240 --> 00:04:39,360 Speaker 1: superannuation is closely linked to income, and not just income 79 00:04:39,400 --> 00:04:43,599 Speaker 1: but income and time spent in the workforce, and so 80 00:04:43,760 --> 00:04:48,240 Speaker 1: many women's working lives looks very different to men know, 81 00:04:48,360 --> 00:04:51,000 Speaker 1: and there are several key factors that contribute to the 82 00:04:51,040 --> 00:04:53,760 Speaker 1: superannuation gap. You know, we've got the gender pay gap, 83 00:04:53,800 --> 00:04:57,159 Speaker 1: which is where women are still today earning around twenty 84 00:04:57,200 --> 00:05:02,000 Speaker 1: percent less than men on average. Since employee contributions are 85 00:05:02,040 --> 00:05:05,640 Speaker 1: calculated as a percentage of someone's salary, this means women 86 00:05:05,680 --> 00:05:08,440 Speaker 1: who are being paid less than their male colleagues will 87 00:05:08,440 --> 00:05:12,359 Speaker 1: therefore receive less money going to their superannuation throughout their careers, 88 00:05:12,400 --> 00:05:17,240 Speaker 1: which is outrageous. No, over decades, those differences really do 89 00:05:17,440 --> 00:05:21,080 Speaker 1: compounds significantly, and you know, women are often more likely 90 00:05:21,200 --> 00:05:24,120 Speaker 1: to take time away from work, like myself this morning, 91 00:05:24,440 --> 00:05:26,480 Speaker 1: I've had to leave work or leave them, walk out 92 00:05:26,520 --> 00:05:28,440 Speaker 1: of a meeting and go and pick my daughter up 93 00:05:28,440 --> 00:05:30,600 Speaker 1: from daycare to look after her and make sure she 94 00:05:30,640 --> 00:05:32,840 Speaker 1: gets better and is well to go back to school shortly. 95 00:05:32,960 --> 00:05:35,440 Speaker 1: So no, this is a classic example, you know, taking 96 00:05:35,480 --> 00:05:38,920 Speaker 1: time out to care for children, raise children, to have children. 97 00:05:39,080 --> 00:05:42,320 Speaker 1: You know, also caring for other family members, particularly things 98 00:05:42,320 --> 00:05:44,680 Speaker 1: like you know, elderly parents. And there are a lot 99 00:05:44,720 --> 00:05:47,440 Speaker 1: of households where there is a parent working part time 100 00:05:47,520 --> 00:05:50,000 Speaker 1: or staying at home just to help the running of 101 00:05:50,040 --> 00:05:54,360 Speaker 1: the household. And during these periods, you know, superannuation contributions 102 00:05:54,480 --> 00:05:58,560 Speaker 1: are often stopped entirely, and the real cost isn't just 103 00:05:58,720 --> 00:06:02,720 Speaker 1: the miscontributions, it's also the lost compounding growth that those 104 00:06:02,760 --> 00:06:06,800 Speaker 1: contributions would have actually generated for that woman. And as 105 00:06:06,800 --> 00:06:09,080 Speaker 1: I said, you know the part time work issue. Many 106 00:06:09,080 --> 00:06:11,680 Speaker 1: women do these days, after a certain period of time 107 00:06:11,720 --> 00:06:14,400 Speaker 1: that they feel most comfortable with, return to the workforce 108 00:06:14,440 --> 00:06:17,360 Speaker 1: in a part time or a flexible role, which can 109 00:06:17,440 --> 00:06:22,080 Speaker 1: result in lower incomes and therefore lower superinnuation contributions. Then 110 00:06:22,120 --> 00:06:24,600 Speaker 1: there are the industry differences, so women are more likely 111 00:06:24,640 --> 00:06:28,160 Speaker 1: to work in sectors such as healthcare, education, community services, 112 00:06:28,240 --> 00:06:30,760 Speaker 1: which typically tend to pay a lot less than say, 113 00:06:30,839 --> 00:06:34,320 Speaker 1: other industries, and all of these factors combined contributing to 114 00:06:34,360 --> 00:06:38,680 Speaker 1: this significantly lower retirement savings. And the penny doesn't start 115 00:06:38,720 --> 00:06:41,240 Speaker 1: to drop until you actually go to retire, where it's 116 00:06:41,279 --> 00:06:43,520 Speaker 1: often too late to actually do anything about it. So 117 00:06:43,560 --> 00:06:46,720 Speaker 1: this is why this conversation is so important right now 118 00:06:46,760 --> 00:06:49,520 Speaker 1: to have with all women, regardless of where they work, 119 00:06:49,600 --> 00:06:52,600 Speaker 1: how much they earn, and how old they are. So 120 00:06:52,640 --> 00:06:54,760 Speaker 1: I want to move on to the policies that are 121 00:06:54,960 --> 00:06:57,240 Speaker 1: in force already or being put in force right now 122 00:06:57,240 --> 00:06:59,400 Speaker 1: to help close these gap, because it's not all doom 123 00:06:59,440 --> 00:07:02,520 Speaker 1: and gloom. These challenges exist, but they're also we're putting 124 00:07:02,520 --> 00:07:05,760 Speaker 1: the wheels in motion for policy changes within the system 125 00:07:05,880 --> 00:07:08,480 Speaker 1: and trying to find solutions to help close this gap. 126 00:07:08,520 --> 00:07:10,160 Speaker 1: So let me explain a couple of them. There is 127 00:07:10,280 --> 00:07:13,960 Speaker 1: superannuation coming in that can be paid on parental leave, 128 00:07:14,000 --> 00:07:16,040 Speaker 1: and you know, this is definitely a step in the 129 00:07:16,120 --> 00:07:19,240 Speaker 1: right direction. It's it's an important change and basically is 130 00:07:19,280 --> 00:07:23,920 Speaker 1: around super will now be paid on government funded parental leave. 131 00:07:24,040 --> 00:07:26,600 Speaker 1: So historically, when someone stepped away from the workforce to 132 00:07:26,680 --> 00:07:29,200 Speaker 1: care for say a baby or young children, and they 133 00:07:29,200 --> 00:07:32,960 Speaker 1: were relying on the government's parental leave payments, that no 134 00:07:33,080 --> 00:07:36,800 Speaker 1: superannuation payments were made during that time, so that meant that, 135 00:07:36,880 --> 00:07:41,960 Speaker 1: you know, superannuation was basically paused. But under these new reforms, 136 00:07:42,040 --> 00:07:45,840 Speaker 1: which begin in July this year, superannuation will now be 137 00:07:45,920 --> 00:07:49,920 Speaker 1: paid on the parental leave payments, so it means that 138 00:07:49,960 --> 00:07:53,360 Speaker 1: there will still be now money going into someone's superannuation, 139 00:07:53,840 --> 00:07:56,800 Speaker 1: you know, whilst they on this government assistance. Now, this 140 00:07:56,960 --> 00:08:00,400 Speaker 1: is definitely an important step towards recognizing that raising children 141 00:08:00,440 --> 00:08:05,480 Speaker 1: shouldn't actually damage someone's future financial stability and they're right 142 00:08:05,560 --> 00:08:09,800 Speaker 1: to a safe and secure retirement. Another great improvement is 143 00:08:09,840 --> 00:08:14,680 Speaker 1: also around how employers are paying super contributions. So historically 144 00:08:14,760 --> 00:08:18,000 Speaker 1: employers only need to pay super on a quarterly basis, 145 00:08:18,040 --> 00:08:21,040 Speaker 1: and you know, under these upcoming reforms, superannuation will be 146 00:08:21,120 --> 00:08:23,880 Speaker 1: required to actually be paid at the same time that 147 00:08:23,960 --> 00:08:26,360 Speaker 1: you get paid your salary. So you know, if you 148 00:08:26,400 --> 00:08:29,040 Speaker 1: get paid, say fortnightly, your employer is going to have 149 00:08:29,080 --> 00:08:33,080 Speaker 1: to start paying your superannuation fortnightly as well. So what 150 00:08:33,240 --> 00:08:35,320 Speaker 1: the benefit behind this is, Even though it may seem 151 00:08:35,360 --> 00:08:38,840 Speaker 1: like not much, it actually means that your superannuation contributions 152 00:08:38,840 --> 00:08:42,200 Speaker 1: are being paid more reliably, reducing that unpaid super risk. 153 00:08:42,240 --> 00:08:44,720 Speaker 1: But it also means that money can start compounding earlier 154 00:08:44,760 --> 00:08:46,680 Speaker 1: because you're not having to wait for every quarter to 155 00:08:46,679 --> 00:08:49,280 Speaker 1: see your superinneration money come in. Then there is the 156 00:08:49,400 --> 00:08:54,480 Speaker 1: low income super tax offset, So employer superannuation contributions we 157 00:08:54,520 --> 00:08:57,679 Speaker 1: all know are taxed at fifteen percent within the superannuation system, 158 00:08:57,760 --> 00:09:00,120 Speaker 1: So if your employer puts one hundred dollars in, the 159 00:09:00,120 --> 00:09:02,800 Speaker 1: government takes fifteen percent contributions tax, leaving you with eighty 160 00:09:02,800 --> 00:09:06,040 Speaker 1: five dollars going to your super. However, for someone who 161 00:09:06,120 --> 00:09:10,280 Speaker 1: is earning a lower income, this fifteen percent tax go 162 00:09:10,400 --> 00:09:12,880 Speaker 1: of their SUPER could actually be higher than what their 163 00:09:12,920 --> 00:09:16,520 Speaker 1: normal mrginal tax rate is. So to help correct this 164 00:09:16,679 --> 00:09:19,319 Speaker 1: and I guess create a sense of fairness and balance, 165 00:09:19,800 --> 00:09:23,400 Speaker 1: the government actually refunds the tax paid, that is, the 166 00:09:23,400 --> 00:09:27,160 Speaker 1: fifteen percent contributions tax for people who are earning thirty 167 00:09:27,160 --> 00:09:29,560 Speaker 1: seven thousand dollars a year or less, and they will 168 00:09:30,120 --> 00:09:32,920 Speaker 1: refund back into the super up to five hundred dollars 169 00:09:32,960 --> 00:09:35,320 Speaker 1: per year. Look, it's not a huge amount, but again 170 00:09:35,440 --> 00:09:37,720 Speaker 1: it just helps a little bit to help I guess 171 00:09:37,760 --> 00:09:41,160 Speaker 1: remove that disadvantage for low income earners that big part 172 00:09:41,200 --> 00:09:43,320 Speaker 1: of a risk of being in this gap. Then there's 173 00:09:43,320 --> 00:09:46,640 Speaker 1: obviously the government co contribution, which I've spoken about many 174 00:09:46,679 --> 00:09:48,439 Speaker 1: many times. But you know, if you're a load to 175 00:09:48,480 --> 00:09:51,439 Speaker 1: middle income earner and you make an after tax contribution 176 00:09:51,559 --> 00:09:54,320 Speaker 1: into your super, the government may put up to five 177 00:09:54,400 --> 00:09:57,560 Speaker 1: hundred dollars extra. So if you're thinking about this, can 178 00:09:57,600 --> 00:09:59,959 Speaker 1: I suggest you go and set up just an automated 179 00:10:00,080 --> 00:10:02,840 Speaker 1: twenty dollars per week contribution plan, because then you don't 180 00:10:02,840 --> 00:10:04,680 Speaker 1: have to think about it. It's just done. It's done 181 00:10:05,040 --> 00:10:07,839 Speaker 1: gently across the course of the financial year. And know 182 00:10:08,080 --> 00:10:10,640 Speaker 1: what that effectively means is you're getting a five hundred 183 00:10:10,640 --> 00:10:13,679 Speaker 1: dollar top up. You know, it's an instant fifty percent 184 00:10:13,720 --> 00:10:16,479 Speaker 1: boost of your retirement savings. And I was just reflecting 185 00:10:16,640 --> 00:10:18,640 Speaker 1: the other day. I remember when I was a student 186 00:10:18,679 --> 00:10:21,720 Speaker 1: working part time, I did the government's Code contribution and 187 00:10:21,800 --> 00:10:25,040 Speaker 1: I thought it was absolutely fantastic. I have no regrets whatsoever. Then, 188 00:10:25,200 --> 00:10:27,600 Speaker 1: I want to move on now to some the practical 189 00:10:27,640 --> 00:10:31,240 Speaker 1: things that women can take home today and apply in 190 00:10:31,280 --> 00:10:34,720 Speaker 1: their everyday lives to help fix this gap. Whilst the system, 191 00:10:35,000 --> 00:10:37,840 Speaker 1: the policies, the reforms, you know, it's going to take 192 00:10:37,880 --> 00:10:40,160 Speaker 1: a while to really come into play and actually be 193 00:10:40,440 --> 00:10:42,439 Speaker 1: of actual impact. I don't want us to be sitting 194 00:10:42,440 --> 00:10:44,560 Speaker 1: on our hands, waiting and relying on other people. I 195 00:10:44,559 --> 00:10:45,960 Speaker 1: think we should all just get on and try and 196 00:10:46,000 --> 00:10:48,319 Speaker 1: do things ourselves to help save ourselves because it may 197 00:10:48,320 --> 00:10:50,600 Speaker 1: take a while for these things to actually be approved 198 00:10:50,800 --> 00:10:52,920 Speaker 1: and signed off on. So the first thing I would 199 00:10:52,960 --> 00:10:55,240 Speaker 1: recommend with anyone you know that's ever worried about the 200 00:10:55,240 --> 00:10:57,800 Speaker 1: superannuation gap, or in fact it should be for everyone, 201 00:10:57,840 --> 00:11:00,840 Speaker 1: but staying engaged with your super no what your account 202 00:11:00,880 --> 00:11:03,840 Speaker 1: balance is, where your money's invested, the fees that you're paying, 203 00:11:03,880 --> 00:11:06,600 Speaker 1: and the insurance policies that you've got attached. You know, 204 00:11:06,880 --> 00:11:10,120 Speaker 1: for most of us, our superannuation will be our largest 205 00:11:10,120 --> 00:11:13,920 Speaker 1: financial asset that we will ever own. But it surprises me, 206 00:11:14,080 --> 00:11:17,559 Speaker 1: it alarms me that so many people rarely bother looking 207 00:11:17,559 --> 00:11:20,360 Speaker 1: at it, and that's simply not good enough. Another thing 208 00:11:20,360 --> 00:11:24,319 Speaker 1: to take into consideration with care is consolidating your multiple 209 00:11:24,360 --> 00:11:27,480 Speaker 1: superannuation accounts. So if you've changed jobs, you know, several 210 00:11:27,520 --> 00:11:29,480 Speaker 1: times over the last say ten to fifteen years, it 211 00:11:29,520 --> 00:11:32,880 Speaker 1: is quite possible that you have some other superannuation accounts 212 00:11:32,880 --> 00:11:35,800 Speaker 1: floating around, and if that's the case, you're being charged 213 00:11:35,840 --> 00:11:39,040 Speaker 1: most likely separate fees on these accounts. So the general 214 00:11:39,080 --> 00:11:41,240 Speaker 1: rule of thumb is, yes, consolidate them, because it helps 215 00:11:41,240 --> 00:11:43,240 Speaker 1: reduce the costs and it ensures that your money is 216 00:11:43,400 --> 00:11:46,560 Speaker 1: pulled and properly invested. But be very careful with this 217 00:11:46,640 --> 00:11:49,200 Speaker 1: because there are risks in rolling over, because you might 218 00:11:49,240 --> 00:11:52,640 Speaker 1: have insurance policies attached. There might be some tax payable 219 00:11:52,800 --> 00:11:56,280 Speaker 1: as well. You know, consolidating is obviously the general rule 220 00:11:56,320 --> 00:11:57,880 Speaker 1: of thumb, but do it with care because you don't 221 00:11:57,880 --> 00:12:01,200 Speaker 1: want to end up losing insurance that are protecting you. 222 00:12:01,520 --> 00:12:04,240 Speaker 1: And obviously there'll be taxes, there'll be fees and charges 223 00:12:04,240 --> 00:12:05,840 Speaker 1: in moving, and you want to make sure that you 224 00:12:05,920 --> 00:12:09,320 Speaker 1: pick the right superannuation account for you. That is your mothership, 225 00:12:09,360 --> 00:12:13,840 Speaker 1: your central destination for all your Superhnation contributions going forward. 226 00:12:14,360 --> 00:12:17,720 Speaker 1: Then of course reviewing your investment strategy. You know, never 227 00:12:17,760 --> 00:12:20,679 Speaker 1: forget super is a long term game plan. So again 228 00:12:20,720 --> 00:12:22,480 Speaker 1: the general rule of thumb is the more time that 229 00:12:22,520 --> 00:12:25,200 Speaker 1: you've got, the more risk you can afford to take. 230 00:12:25,280 --> 00:12:27,400 Speaker 1: Now that doesn't mean you just automatically go out and 231 00:12:27,480 --> 00:12:30,080 Speaker 1: select you know, the international shares and the Australian shares 232 00:12:30,120 --> 00:12:32,160 Speaker 1: and property and go with this high growth custom if 233 00:12:32,200 --> 00:12:34,559 Speaker 1: you like risk profile, no, you need to sit down 234 00:12:34,600 --> 00:12:37,520 Speaker 1: and do a risk profile. But do take into consideration 235 00:12:37,840 --> 00:12:41,240 Speaker 1: the more risk you take, the greater the opportunity to 236 00:12:41,320 --> 00:12:44,719 Speaker 1: build more money, particularly over the long run exists. Now 237 00:12:44,800 --> 00:12:47,440 Speaker 1: I don't say that to encourage you to invest your 238 00:12:47,440 --> 00:12:50,080 Speaker 1: Supernation money outside of your risk zone, but I'm saying 239 00:12:50,120 --> 00:12:52,800 Speaker 1: it from an educational point of view to understand when 240 00:12:52,840 --> 00:12:56,480 Speaker 1: it's actually sensible and wise to be a little bit 241 00:12:56,559 --> 00:12:59,400 Speaker 1: more generous in step out of your comfort zone if 242 00:12:59,440 --> 00:13:02,720 Speaker 1: it's going to helps provide you with greater support over 243 00:13:02,920 --> 00:13:04,960 Speaker 1: the long run. And of course you know review this 244 00:13:05,000 --> 00:13:07,520 Speaker 1: on a regular basis so that you understand exactly what 245 00:13:07,559 --> 00:13:11,200 Speaker 1: you're doing and constantly educate yourself. And then on that note, 246 00:13:11,440 --> 00:13:14,760 Speaker 1: think about investing outside of SUPER. It is really valuable 247 00:13:14,760 --> 00:13:18,720 Speaker 1: to build assets and income that is passive income outside 248 00:13:18,720 --> 00:13:20,400 Speaker 1: of SUPER. And you can do this through a share 249 00:13:20,400 --> 00:13:23,520 Speaker 1: portfolio such as ETFs and listed investment companies, or even 250 00:13:23,520 --> 00:13:26,040 Speaker 1: a property portfolio. Now, these the investments are going to 251 00:13:26,080 --> 00:13:29,800 Speaker 1: give you that additional financial security and flexibility. I love 252 00:13:29,840 --> 00:13:32,520 Speaker 1: my superannuation. I've shared my account balance. I think I've 253 00:13:32,559 --> 00:13:34,560 Speaker 1: around about six hundred thousand dollars in SUPER and I'm 254 00:13:34,559 --> 00:13:37,000 Speaker 1: a forty five year old working mum. Now I also 255 00:13:37,080 --> 00:13:39,960 Speaker 1: invest as well. I don't just rely purely on my SUPER, 256 00:13:40,040 --> 00:13:41,800 Speaker 1: and I like the fact that I have an investment 257 00:13:41,800 --> 00:13:43,920 Speaker 1: portfolio as well that if I want to retire earlier 258 00:13:43,920 --> 00:13:45,920 Speaker 1: than I've allowed access to my SUPER, I have that 259 00:13:46,000 --> 00:13:48,480 Speaker 1: to fall back on for greater you know, flexibility, for 260 00:13:48,520 --> 00:13:51,680 Speaker 1: greater financial resilience and to sleep better at night. So 261 00:13:51,720 --> 00:13:53,839 Speaker 1: don't just purely think it's just your SUPER that you 262 00:13:53,880 --> 00:13:56,079 Speaker 1: need to focus on. Do consider when the timing is 263 00:13:56,120 --> 00:13:59,240 Speaker 1: appropriate about investing outside of SUPER. And again, you have 264 00:13:59,360 --> 00:14:02,319 Speaker 1: that control that liquidity when you have money outside of 265 00:14:02,360 --> 00:14:04,480 Speaker 1: super as well, which is a great level of confidence, 266 00:14:04,480 --> 00:14:07,920 Speaker 1: support and flexibility. Then, of course, there are things we 267 00:14:07,960 --> 00:14:10,920 Speaker 1: can do as couples. There are so many strategies. Closing 268 00:14:10,920 --> 00:14:13,560 Speaker 1: the super gap should never be seen as just a 269 00:14:13,600 --> 00:14:17,840 Speaker 1: woman's responsibility. It can often be addressed within a home, 270 00:14:17,960 --> 00:14:20,800 Speaker 1: a household of family. Things like, you know, one partner 271 00:14:20,840 --> 00:14:24,480 Speaker 1: can actually contribute directly to their spouse's superannuation account, you know, 272 00:14:24,560 --> 00:14:26,960 Speaker 1: particularly whilst they're not working, and this can help maintain 273 00:14:27,040 --> 00:14:30,160 Speaker 1: those you know, retirement savings for one partner who may 274 00:14:30,160 --> 00:14:32,960 Speaker 1: be actually working less. So to have those conversations with 275 00:14:33,000 --> 00:14:35,080 Speaker 1: your partners, say I'm at home, I'm raising the children. 276 00:14:35,160 --> 00:14:37,360 Speaker 1: Can we look at our family budget and look at 277 00:14:37,440 --> 00:14:39,440 Speaker 1: putting some money into my super each year so that 278 00:14:39,480 --> 00:14:41,840 Speaker 1: I'm not going backwards or I'm not platauing. There's also 279 00:14:41,920 --> 00:14:44,720 Speaker 1: things like in a contribution splitting where couples can split 280 00:14:44,920 --> 00:14:48,840 Speaker 1: some SUPER contributions, transferring some contributions from one partner's account 281 00:14:48,920 --> 00:14:51,200 Speaker 1: to the other. Again, speak to your accountant, speak to 282 00:14:51,240 --> 00:14:53,800 Speaker 1: your financial planner about this. This can be really really 283 00:14:53,880 --> 00:14:56,640 Speaker 1: valuable and particularly making it more balanced between you know, 284 00:14:56,680 --> 00:14:59,400 Speaker 1: a couple. Then of course, there's the catch up contributions 285 00:14:59,400 --> 00:15:02,560 Speaker 1: which we spoke about. There is the downsize of contributions, 286 00:15:02,600 --> 00:15:05,280 Speaker 1: which is particularly valuable right now, and it's a really 287 00:15:05,320 --> 00:15:08,440 Speaker 1: strong talking topic with people who are approaching retirement. So 288 00:15:08,640 --> 00:15:11,640 Speaker 1: women and men age fifty five and over can look 289 00:15:11,680 --> 00:15:14,880 Speaker 1: at contributing up to three hundred thousand dollars each into 290 00:15:14,920 --> 00:15:18,240 Speaker 1: their superannuation if they are selling their family home now. 291 00:15:18,240 --> 00:15:20,760 Speaker 1: There are certain terms and conditions which I won't go 292 00:15:20,840 --> 00:15:23,240 Speaker 1: into today's episode because I have other episodes where I've 293 00:15:23,240 --> 00:15:26,000 Speaker 1: explained all of this, but you know this can again 294 00:15:26,240 --> 00:15:28,640 Speaker 1: if you're a couple, or you're a woman who owns 295 00:15:28,640 --> 00:15:31,680 Speaker 1: your own home, this actually may allow you to put 296 00:15:31,720 --> 00:15:34,120 Speaker 1: a lot of money into your superannuation so that you're 297 00:15:34,120 --> 00:15:37,560 Speaker 1: not retiring it in poverty, you're not retiring with no 298 00:15:37,720 --> 00:15:41,000 Speaker 1: financial stability or security to help support you for a 299 00:15:41,080 --> 00:15:43,880 Speaker 1: long and comfortable retirement. It's one of the most popular 300 00:15:43,920 --> 00:15:46,840 Speaker 1: strategies that's actually being used right now. Also, I should 301 00:15:46,840 --> 00:15:51,480 Speaker 1: mention the downsize of contribution doesn't actually count towards any 302 00:15:51,480 --> 00:15:53,640 Speaker 1: of the other caps that we have at the moment, 303 00:15:53,720 --> 00:15:57,240 Speaker 1: so it really does provide a really clear solution for 304 00:15:57,280 --> 00:15:59,880 Speaker 1: people to be able to beef up their superannuation, particularly 305 00:16:00,120 --> 00:16:02,400 Speaker 1: they're at their tail end of working life and really 306 00:16:02,400 --> 00:16:05,280 Speaker 1: about to start enjoying their retirement. But you know, there 307 00:16:05,360 --> 00:16:07,640 Speaker 1: are some important things to know and understand before doing 308 00:16:07,640 --> 00:16:10,640 Speaker 1: that is something you actually need to get advice from, 309 00:16:10,680 --> 00:16:12,920 Speaker 1: not just an accountant and a financial planner, but also 310 00:16:12,920 --> 00:16:15,560 Speaker 1: a real estate agent. All right, So, as we all 311 00:16:15,560 --> 00:16:18,880 Speaker 1: now know, the superannuation gap is real. It's very real. 312 00:16:18,920 --> 00:16:21,360 Speaker 1: But what is also real is there are many strategies 313 00:16:21,480 --> 00:16:23,920 Speaker 1: out there that are available to us to help close it. 314 00:16:24,000 --> 00:16:26,600 Speaker 1: You know, financial independence is one of the most powerful 315 00:16:26,680 --> 00:16:30,920 Speaker 1: forms of empowerment. And this International Women's Day International week, 316 00:16:30,920 --> 00:16:32,560 Speaker 1: because we all sort of tend to celebrate for the 317 00:16:32,600 --> 00:16:35,560 Speaker 1: next five days, I encourage every single woman listening right 318 00:16:35,600 --> 00:16:39,080 Speaker 1: now to do one simple thing for themselves. Look into 319 00:16:39,120 --> 00:16:42,080 Speaker 1: your superannuation account, understand how much you've got where you 320 00:16:42,080 --> 00:16:47,000 Speaker 1: stand financially. Take one small step towards strengthening that superannuation account, 321 00:16:47,040 --> 00:16:51,600 Speaker 1: because small financial decisions today, backed with action, can create 322 00:16:51,680 --> 00:16:55,200 Speaker 1: an enormous sense of security for tomorrow. Now, I really 323 00:16:55,200 --> 00:16:58,680 Speaker 1: hope you've enjoyed listening to this special International Women's Day episode. 324 00:16:58,760 --> 00:17:01,600 Speaker 1: If you have any questions at all, please send me 325 00:17:01,640 --> 00:17:04,680 Speaker 1: a DM on Instagram and in the podcast notes, I'm 326 00:17:04,680 --> 00:17:06,720 Speaker 1: going to share with you five different episodes that I 327 00:17:06,760 --> 00:17:10,960 Speaker 1: strongly recommend if you have any questions about superannuation, preparing 328 00:17:11,000 --> 00:17:14,240 Speaker 1: for a retirement, and helping maximize your super, which includes 329 00:17:14,280 --> 00:17:17,320 Speaker 1: picking the best superannuation account for you. All Right, everyone, 330 00:17:17,359 --> 00:17:18,159 Speaker 1: thank you for listening.