Women and Super

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Case studies

Case study 1 – How a career break will impact your superannuation retirement balance

Sarah’s dream is to use her skills to help those much less fortunate than herself.

As a 38 year mid-wife, Sarah is planning to take a three-year career break when she is 40 to do voluntary work overseas. She plans on returning to work full-time and retiring when she is 60.

Sarah’s current pre-tax salary is $71,000 a year; she has $38,000 in super as at 31 December 2015. She’s concerned about the impact her career break will have on her retirement savings.

Savings with and without career breaks
Assumptions:
These amounts are indicative only and have been provided by First State Super Financial Services Pty Ltd ABN 37 096 452 318, AFSL 240019 on the basis of superannuation legislation (including amendments which have been announced) at 31 December 2015. The figures are based on an assumed investment return of 6.80% p.a. (Diversified investment option) before tax and investment fees. Tax of 15% on concessional contributions has been applied. The following allowances have been made for fees and charges: Investment management expense of 0.43% pa, Indirect cost ration of 0.04%, administration fee of $52 p.a. and insurance premiums of $240 p.a. An indexation rate of 4.00% p.a. has been applied to salary, insurance premiums and administration fees. This is illustrative only and does not guarantee an outcome. See a financial planner for advice that considers your personal objectives and needs.

Case study 2 – Increase your superannuation balance by salary sacrificing a little extra

Julie is a 26-year old, who is a 2nd year teacher with a current salary of $64,000. She has already accumulated $9,000 in super at 31 December 2015.

She plans to take a year off once she turns 30 to have a baby, and to then return to work part time for 4 years, during which she will be working 3 days per week. But she is worried how this will impact her superannuation balance when she retires at 67.

To help reduce the superannuation gap from her career break, Julie decides to cut back her coffee intake to see what the difference salary sacrificing $5 or $15 each week will have on her super balance.

Savings through salary sacrifice
Assumptions:
These amounts are indicative only and have been provided by First State Super Financial Services Pty Ltd ABN 37 096 452 318, AFSL 240019 on the basis of superannuation legislation (including amendments which have been announced) at 31 December 2015. The figures are based on an assumed investment return of 6.60% p.a. (Diversified investment option) before tax and investment fees. Tax of 15% on concessional contributions has been applied. The following allowances have been made for fees and charges: Investment management expense of 0.43% pa, indirect cost ration of 0.04%, administration fee of $52 p.a. and insurance premiums of $305 p.a. An indexation rate of 4.00% p.a. has been applied to salary, insurance premiums and administration fees. No contributions for a year and then a 40% reduction in income levels for the period of part-time work has also been applied. The account balances are in ‘today’s dollar’ figures. This is illustrative only and does not guarantee an outcome. See a financial planner for advice that considers your personal objectives and needs.

Member stories

Some of First State Super’s female members think super is really important and want to share their stories with other women. Listen to what these women thought about super.

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Share your story

Have you got a story about how you’ve turned your finances around or an ‘ah huh’ moment about your super?

Our members would love to hear about how women, like them, took simple steps to that lead to financial empowerment.

Send us an email with your contact details and a brief outline of your story and we’ll be in touch.

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