For many women, juggling work, kids and other home chores means sorting out retirement savings is the last thing on their mind.
About 90 per cent of women will retire with inadequate savings and, according to Association of Superannuation Funds of Australia, one in three will retire with no super at all.
Mercer financial adviser Helen Angwin shares her tips to help narrow the super gender gap.
- Engage with your finances and educate yourself about tax, super and investments.
- Cash flow is the cornerstone of wealth creation so use a budget; know where the money comes from and where it goes. Do not allow yourself to splurge.
- Start small and set achievable savings targets.
- Build your career and ensure you receive pay that is commensurate with your position.
- Salary sacrifice small amounts into super all through your working life.
- Be disciplined about saving for a deposit on your own home; consider flat mates to help repay the mortgage.
- If you are a home owner think about using the equity in your home to build wealth.
- If you are negotiating a divorce, seek financial advice. Women often take the home or car, rather than the investment assets, like super, shares and investment properties. In the long term this can lead to lower returns.