International Women's Day a good time to consider superannuation - Ombudsman

AHEAD of International Women’s Day on Sunday, March 8, the Australian Small Business and Family Enterprise Ombudsman Kate Carnell said the gender gap in superannuation "needs to be addressed".

“It’s staggering that in 2020, one in three women are retiring with zero superannuation,” Ms Carnell said. “The average super balance for women aged between 45 and 54 is about $114,000 versus $180,000 for men in the same age bracket.

“Women have an average retirement fund of $196,000 while men finish up their working lives with more than $310,000. While the number of women becoming small business owners has grown significantly in recent years, many are still not making regular contributions to their super.

“We know that small business owners tend to rely on their business to be their super, putting money into their business instead of their super funds," Ms Carnell said. 

“The strategy is often to ultimately sell the business and use the proceeds to fund retirement, but that’s very risky – particularly for women who statistically speaking, are less likely to grow their business.

“Our Small Business Counts report shows more than half of Australia’s small business owners have reported taxable incomes of less than the minimum wage, which makes it tough to pay super," Ms Carnell said.

“But even a small amount put away now – with compounding interest – is better than later in life.

“This International Women’s Day, let’s celebrate the fact that women are fantastic entrepreneurs but it is critical women consider their future now and make regular contributions to superannuation.”

www.asbfeo.gov.au

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