How women can get the most out of their superannuation

New data from the ATO has revealed a $51,000 gap in one key area - but one expert says it’s possible to protect yourself from being affected.

Many women are financially disadvantaged in the workplace because they are paid less than men, which means their superannuation funds are also far less, but there are ways to reduce the gender gap.

According to the Australian Taxation Office (ATO), for Australians aged 55 to 59, men have an average of $51,000 more saved than their female colleagues.

That is the equivalent of more than 3½ years of contributions for workers on the median national salary of $70,000 per year.

UniSuper manager of select advice Renae Anderson said that figure was improving over time but still not where it needed to be.

“This issue comes about from the fact that women’s working pattern is slightly different,” she told NCA NewsWire.

“We’ve typically taken time out of the workforce to raise family or to care for family. We often return to the workforce in a part-time capacity, and we often hold the lower paid jobs in the community.

“So it’s all of these things that have contributed to the issue.”

Ms Anderson said there were four key ways for women to boost their retirement savings.

There are ways for women to boost their retirement savings.

SPOUSAL CONTRIBUTIONS

Ms Anderson said women should check if spousal contributions were relevant to them.

“Generally, for women earning less than $37,000 per year, your spouse could generally contribute $3000 each year to your super and receive a $540 tax rebate,” she said.

“So this helps to top up your super while also providing a tax benefit to your spouse.”

CATCH-UP CONTRIBUTIONS

If you have had time away from work to have a baby or some other reason, Ms Anderson recommends considering catch-up contributions.

“If you have a total super balance of less than $500,000 – and you haven’t used all of your concessional contribution cap of up to $27,500 in previous years – you could make extra contributions,” she said.

“So this could have a significant impact on your super balance, and anyone with a tax rate higher than 15 per cent could save a considerable amount of tax as well.”

It is never too late to start saving. Picture: iStock

CHECK YOUR FEES

Being in a low-fee fund saves everyone thousands of dollars by the time they retire, according to Ms Anderson.

The ATO’s MySuper Comparison site is a great place to start to find the best deal that suits you.

INVEST IN YOUR SUPERANNUATION

Ms Anderson advises the earlier you start investing in your super, the sooner your money starts working for you.

“It doesn’t matter where you are in your career … time is your superpower thanks to compounding interest,” she said.

“Between the ages of 35 and 39, there’s already a gap of around $15,000 in super, so the earlier that you start to look at these things the better.”