Bringing sexy back: Superannuation
I'm bringin' sexy back (yeah)
Them other boys don't know how to act (yeah)
I think it's special, what's behind your back (yeah)
So turn around and I'll pick up the slack (yeah)
Justin Timberlake, Sexy Back, 2006
Superannuation in Australia encourages people to accumulate funds to provide them with an income stream when they retire. Super is important because the more you save, the more money you will have for your retirement.
FACT: Talking, reading and learning about Superannuation hurts my brain. As simple as the concept of superannuation is - the choices, accounts accumulated over the years, the regulations etc etc etc well it can be complex and confusing and frankly, I would rather do my washing, clean the fridge, poke myself in the eye - HOWEVER, this does not mean I should continue to be naive, ignorant or apathetic about Superannuation. I have been working for a very long time, therefore contributing to my super and I plan to continue to do so - actually this is one of the biggest financial investments I have made so far! (excluding my shoe collection) so I knew it was time I surround myself with experts, learn something new and at least be in a better position to ask semi-intelligent questions! And stop groaning or eye-rolling whenever Superannuation is mentioned.
According to the ASFA (The Association of Superannuation Funds of Australia) Retirement Standard, a couple can live a ‘comfortable lifestyle’ with a retirement balance of $640,000 while singles can enjoy the same with $545,000. How's your superannuation fund or funds stacking up?
It's suggested that you will need between 65- 80% of your current income to maintain the standard of living you currently have.
Superannuation is not about men and/or women of course! However, unfortunately, women are disadvantaged, generally because we take time out of the workforce to take care of children. This is an interesting summary and recent report on this subject. The study suggests that 'even if women return to work in their 40s after having children, they cannot make up early salary inequity which leads to women’s reliance on the age pension.'
I have started to invest my time in learning more about Superannuation - I love a good challenge! And in the lyrics of Justin Timberlake:
Go 'head, child and get your sexy on.