The alarming truth of Women and Superannuation
This blog is based on the podcast season 2 episode 5, Women and Superannuation with Trenna Probert, and highlights the key points discussed by Trenna from Super Fierce.
Women and Superannuation: Closing the Gender Wealth Gap
Trenna Probert shares her insights with us from building and owning Super Fierce, a business dedicated to empowering women financially by comparing superannuation funds and offering valuable reporting on ways to maximise your superannuation for a more secure and empowered financial future.✌
Super Fierce
Trenna founded Super Fierce as a response to her own experiences with financial hardship, which stemmed from giving away her power in relationships. Her mission is to close the $30 trillion global gender wealth gap by making financial advice accessible to women worldwide.
The gender wealth gap is a pressing issue because women, on average, retire with 42% less superannuation than men in Australia. This gap exists globally, with the gender retirement gap being the largest contributor to the gender wealth gap in every OECD region. For women hearing this, it’s alarming.
Financial literacy is crucial, but expecting individuals, especially women, to navigate complex financial systems without proper education or support is unfair. Women already manage household finances efficiently and are intuitively good at investing. Super Fierce aims to build on these strengths and provide the resources needed to make informed financial decisions.👏
Superannuation is your money, and it's essential to understand how it works. It's not just a savings account; it's a tax-effective investment environment. By paying attention to fees and ensuring your super is invested wisely, you can significantly impact your future financial wellbeing. Super Fierce provides a simple solution to the complex world of superannuation. Their platform offers unbiased advice, assessing over 2000 investment options from more than 350 super funds to create a custom investment portfolio tailored to your needs.🙌
Why might you want that? Because at some point, superannuation becomes your reality. 🌴Young people don’t think enough about it because it’s not real for them – yet. We need to help young adults put meaning behind their superannuation and create a vision for their retirement early, so they don’t squander the early years by not managing their own superannuation wisely early on when fees are high and contributions are low, or spread across multiple funds with a set of casual jobs throughout teen and young adult life.
By the age of 50 there’s a 73% superannuation gap between women and men in Australia, and women earn $253.70 less per week on average than men, which is 14.6% less. (CBA Women’s financial wellbeing guide, 2023)
Empowering women through financial education 👛🎓
Super Fierce's mission aligns with our belief that women should not only be uplifted but empowered with the knowledge and tools to take control of their financial future. It's time to close the gender wealth gap and ensure that every woman has the opportunity to live a financially secure and fulfilling life.
Get real with your superannuation
Superannuation becomes a hot topic once a year when funds start boasting about their performance and publishing their reports. However, the reality is, last year's performance is just a speck in the grand scheme of things, not a true indicator of the success of the fund long-term. 💸Understanding superannuation is crucial, and it's more than just picking a fund based on flashy advertising. Let's delve into why being informed about your super really matters:
· Fees vs. performance: The Grattan Institute hits the nail on the head with their statement: "Fees are persistent, and performance is transient." What does this mean? It means you can be sure about the fees you're paying, but not the performance you'll get. Before anything else, ensure you're not overpaying in fees. 💰💰💰 Yes, performance matters, but it should be measured over the long term, not just last year's data. 📈
· One at a time: Having one superannuation fund for all your money rather than multiple means your fees are kept to a minimum, so rolling over into one is seen as best practise.
· The importance of a long-term view: Superannuation is a long-term investment. Over the last 20 years, we've seen all sorts of economic events, from financial crises to tech bubbles. Benchmarking funds and investment options over such periods gives a glimpse into how they perform in various environments, offering insights into their potential for delivering consistent returns over decades.
· Seeking unbiased advice: Unlike comparison sites that might prioritize funds based on payments, independent services like Super Fierce strive for unbiased, unconflicted advice. For a nominal fee to use Super Fierce’s unbiased comparison tool, you can receive a personalized report guiding you toward the best super fund and investment options for your situation.
· Having access: Being able to log into view and manage your superannuation is critical, alongside knowing how much you will need for comfortable retirement at the lifestyle you desire.
· Taking control: It's time to stop ignoring your super. Regularly review your fund's performance, ideally around tax time or key life events. Whether you're starting a new job, planning a family, or nearing retirement, these are moments to reassess your super strategy.
· Knowing the payments are being made: 🔎Reviewing your contributions means you know your employer is making the mandatory payments into your fund, and you can see the statement which shows all the fees and contributions made.
· Empower yourself financially: Understanding your super and actively managing it can lead to significant benefits, both in fee savings and potentially improved performance. 💵 It's your money, and being proactive can lead to a more secure financial future.
In Summary
Superannuation is not just about setting and forgetting. It's about being informed, making deliberate decisions, and taking control of your financial future. Whether it's reviewing fees, assessing performance, or seeking advice, being proactive with your super can lead to a more secure and empowered financial future. When was the last time you checked your super? 🔎This is your sign. It’s time to log in now! 📱
Get your personalised superannuation report at Super Fierce: https://superfierce.com.au/
Listen to the full podcast here: https://www.themoneycollective.com.au/podcast
This article provides general advice only. It does not take into account your objectives, financial situation or needs. Before acting on any information provided, you should consider the appropriateness of the information and the nature of the financial product in regards to your objectives, financial situation and needs. We recommend discussing your personal situation with a financial professional.
Blog article by:
MEL PEARCE
Co-Founder, Financial Wellbeing Coach and Mortgage Broker
The Money Collective