While superannuation is considered an important financial safety blanket for the future, it has been revealed that there is still a significant gap between males and females.
According to Roy Morgan, men who hold a superannuation fund have an average balance of $158,100 in the year to June. However, women still trailed by close to 35 per cent, with the year average sitting at $101,900.
It is important to note that the gap is closing. In 2005, the percentage gap was just under 45 per cent with this reducing by around 10 per cent in the last decade.
Industry Communications Director at Roy Morgan Research Norman Morris explained why average superannuation balances are closing between men and women.
“Obviously, several factors are helping to close the gap, such as the gradual impact of the compulsory super scheme, higher levels of education for women, increased awareness of the issue, increased work-force participation and a trend towards self-managed super,” he said.
“However, the gap is narrowing very slowly, and more definitive action is probably needed.”
Are women happy in their current superannuation funds?
As with both genders, the performance and associated fees of their superannuation fund are what keep people engaged and committed.
Based on Roy Morgan’s findings, the majority of women (78.8 per cent) who are currently in Self-Managed Super Funds are satisfied with its financial performance. Other reported funds included Q Super (72.7 per cent) and Catholic Super (65.8 per cent).
“Despite the fact that superannuation performance tables are produced from a number of sources and published periodically, fund members’ behaviour will ultimately be determined by how they feel their fund is performing,” Mr Morris continued.
$1 million superannuation dream false
Although setting up superannuation is vital for all working Australians, the thought of establishing a nest egg in excess of $1 million is just not realistic, according to the Australian Institute of Superannuation Trustees (AIST).
The AIST believe that recent media reports that at least $1 million was required for a set retirement was causing concern around the national workforce.
In its Busting the $1 million retirement myth report, an IT contractor who is earning around $55,000 could retire on an income of around $34,000 on retirement.
“It’s time to get real about super and ensure all Australians have a far better understanding of the sort of income they can expect in retirement,” AIST CEO Tom Garcia stated.
For those in the IT industry, superannuation is something to think about now. This is where Oncore Services can come in handy. Through our contractor management software and salary packaging options, we can help you ensure you are in the right superannuation fund for your future.