Female Teachers more Retirement Savvy than Males
It looks like female teachers have a better handle on their retirement finances than their male counterparts.
ABS figures show that in 2018 females between the age of 45 and 54 recorded an average superannuation nest egg of $129,100, whilst teacher financial advisory company The Moreton Group has found their female teacher clients show their balance at the same age is $230,900.
Male teachers are doing less well. According to the ABS the average superannuation for males between 45 and 54 years is $196,400 whilst The Moreton Group’s records show that its male teacher clients average $160,000 in super.
All teachers however are thinking about retirement planning from a relatively young age with teachers on average seeking retirement advice at 50 years of age.
Cameron Dickson, Managing Director of The Moreton Group said “Sometimes planning retirement means enjoying your job more – because you are there by choice and not because you think you have to be there. Planning also helps people go to their employer and have conversations about retirement so both can plan better because they are more knowledgeable.
“Nothing is fixed in retirement, it should be very flexible and that flexibility gives you the ability to adapt and change. So dealing with things like sickness in your senior years can be easier,” he said.
A common question form teachers and everyone else is “How much superannuation do I need?” and there is a lot of misinformation about this magic number.
A good reference is the Australian Super Funds Association (a combination of super and retail funds) who have a comfortability standard that shows how money works over time.
“It is not as easy as taking your super amount and dividing it by how many years you expect to live. That will probably give you a figure way higher than you need,” Dickson says.
“The ASFA figures are updated every 3-6 months and have been a long running benchmark.”
Everyone’s situation is different and situations change, including legislation.
“Having someone who monitors your situation and makes sure you are getting the most out of change is very beneficial. They can also help make sure you have the money when you need it throughout retirement, and that you spend it and not save it all because you are worried you might not have enough.”
Useful websites include:
https://www.superannuation.asn.au/
Image by Kristina Paukshtite