Five things women can do in one hour to grow their super

Preparing for retirement is particularly challenging for women, thanks to factors such as lower pay and taking time out of the workforce to raise children.

And although the government has lifted the compulsory superannuation rate from nine to 12% – to be introduced gradually with initial increments of 0.25% from 1 July 2013 – the Australian Institute of Superannuation Trustees (AIST) says this increase will not have a significant impact on the ability of most working women to adequately save for retirement.

But despite these odds, there are a number of steps women can take to help boost their super savings. So, take an hour out from the distractions, get your paper work in order, and consider these tips for growing your nest egg.

1. Make extra contributions to your super, whenever possible: “If you can afford to make even a small contribution, then do it,” says AIST CEO Fiona Reynolds, adding that women on maternity leave should also make extra contributions, if they have the means.”Even if it’s just $20.” Money Smart, a website run by ASIC, suggests asking your employer to pay part of your pre-tax salary into your super fund, as a tax-friendly way to grow super. It also suggests making super contributions out of your own pocket, which will not be subject to the 15% contributions tax that can apply to other types of contributions.
2. Keep track of your super, consolidate your accounts and review your insurance cover: “This will ensure you are not eating away at your balance with unnecessary fees,” says the chief executive of the Association of Superannuation Funds of Australia, Pauline Vamos.
3. Check whether you’re eligible for the government’s co-contribution scheme: “Depending on your income, you may receive a matched contribution from the government of up to $1000 for every dollar you put in,” says Vamos. Under the scheme, contributions are not subject to tax when they’re paid into your super fund.
4. Consider the spousal contribution option: For those women working part-time or casually, Vamos says there is a tax rebate available to spouses of those with earnings less than $13,800 a year. “It’s a good way to make your joint savings go further,” she says.
5. Review the investment options offered by your super fund: “You may want a more or less risky set of options, depending on your circumstances and how close you are to retirement,” says Vamos.