It’s pretty safe to say that most of us know what superannuation is. In fact, most of us have been earning superannuation for years and years – even if you haven’t been keeping track of it.
Superannuation is a mandatory retirement savings system in Australia that relies on employers to contribute a percentage of your income – which traditionally has been a great way to set yourself up for retirement. But when you really look into the numbers, it’s becoming clear that superannuation alone just doesn’t cut it anymore – especially for women.
On average, women retire with a whopping 35% less superannuation than men thanks to the gender pay gap, career breaks and part-time working arrangements.
That is a HUGE disparity, and it’s completely fair enough to feel all the feels about the reality of those figures. It’s also fair enough if you feel disheartened about how to close that gap; how to make sure that you will be stable and secure by the time you’re retiring.
The good news is, there are ways that you can take matters into your own hands and take control of your financial future. How? Through strategic property investing. So let’s talk about it:
The problem with super
The gender pay gap, inconsistent income and taking time off work to grow a family etc. are very real issues that women face, and while things are slowly starting to change, the reality is that they’re just not changing fast enough.
This also means that your super won’t have enough time to catch up, and when you add inflation in there and all of the economic shifts we’re seeing these days, it’s clear that relying solely on super just isn’t a safe option anymore.
After all, you don’t want to be working until you’re 95. At some point it would be nice to cash in on all those hours worked and be able to comfortably take a step back when you enter your later years (or way earlier if you’re smart about it!).
Say hello to a little friend we like to call property investing
The problem with super is that it relies solely on contributions from your employer AND fluctuations in the market. Property doesn’t – which means that YOU actually sit in the driver’s seat, with way more control over growing your finances and placing yourself in a better financial situation.
Here’s what makes property so much more powerful than super:
- Cash flow that you can actually use – TODAY: Through smart property investment you can start to generate rental income (by renting out your property and keeping the cash you get from charging rent) which gives you the benefit of money in your pocket NOW, not just 20 years down the track.
- Capital growth that builds over time: Australian property prices grow on average around 7% per year, which means the longer you hold on to your property, the more it’s going up in value. When you do finally decide to sell, smart investments will give you some really solid returns – without you even having to do anything.
- Take control through leverage: When you invest in property, you’re able to use leverage to put your money to work in a way that super or even shares wouldn’t allow. Let’s say you have a $50K deposit saved up and you borrow $400K from the bank. Rather than only being able to invest $50K towards your future, leverage allows you to buy in on a much bigger asset (a $450K one) which you then get to reap the benefits from.
The importance of building a retirement plan that works FOR YOU
Don’t get us wrong, we’re not here to come in all guns blazing and tell you to just ditch your super because it’s not worth it. Super absolutely has its place and it’s a great way to START building financial security for yourself. But if you want to build financial FREEDOM – well, you need a plan that doesn’t just rely on one strategy.
Of course, the best way to craft a plan that’s right for YOU is to talk to experts (like us!) who have experience doing this day in, day out, and can sit down with you to assess where you’re at.
But if you want to get started on your own, we’d recommend looking into how you can get into the property market to start making capital growth AND cash flow work for you alongside your super.
There are actually options to use your super to invest in property too (double whammy) through a self-managed super fund, which may be something you’d want to look into depending on your situation.
We want you to thrive financially, but we also want you to be able to retire with OPTIONS – not just the cards you were dealt (which unfortunately are often worse cards than a lot of the men you’re surrounded by).
Property investing gives you the tools to make that happen, and we at InvestHER can help teach you how to use them. Contact us here to find out more about how we can help you craft your own unique retirement plan – even if it still feels like it’s a lifetime away.
With the right strategy and support you can build the life you WANT to live, not just the one you’ve been dealt.