Steps to avoid a ‘Super Baby Debt’
Did you know that just two years out of the workforce raising children can leave women up to $50,000* worse off than men in retirement?
The 1% Rule is simply adding one percent to your super when you return to the workforce after maternity leave. As a general rule of thumb, for every two years out of the workforce, women will need to contribute an additional 1% contribution of their salary to their super account until retirement. It is a simple and effective way for mums to recoup their retirement savings after taking time out of the paid workforce to care for their children.
Calculated using ASFA’s Super Guru Retirement Projector and based on a 32 year old woman, who takes two years out of the workforce and has a $115,000 salary, compared to a 32 year old woman, with the same salary and super balance, and no time out of the workforce. This information is current as at August 2012 and may be subject to change.
This information is general advice and doesn't take into account a person's objectives, financial situation or needs. A person should consider the appropriateness of the advice and the Product Disclosure Statement (PDS) before making any decision about acquiring or purchasing a financial product.