With one quarter of the Australian work force opting to work part time1 there are a lot of people short changing their superannuation and retirement savings.
With one quarter of the Australian work force opting to work part time1 there are a lot of people short changing their superannuation and retirement savings.
There are currently over 1.5 million women and 566,000 men working part time2 and therefore receiving superannuation contributions based on a reduced salary.
Managing Director Norwich Union Life, Allan Griffiths urges people to consider their retirement needs when they make the decision to work part time.
“There are a lot of people choosing to work part time for many different reasons ranging from health to family commitments but it’s essential that long term financial needs are thought about when this decision is made. Consider this - when you halve your salary your also halve your super,” said Allan.
By working with an Independent Financial Adviser people can structure their superannuation to ensure they have the funds they need in retirement.
Right now, women are the greatest proportion of people working part time and therefore should be thinking about their super arrangements. In 2001, 43.3 per cent of female employees worked on a part time basis compared to 13.4 per cent of male employees3.
Part-time work arrangements have proven very popular with working mothers, with 36 per cent of married women with children now working part time4.
Many women can expect to outlive their spouse so it is important they have enough funds to last throughout their retirement. Average life expectancies have also increased, with women expecting to live until 86 years while men are looking at 81 years5.
Figures releases by the Australian Bureau of Statistics also note that 55 per cent of full time employees are more likely to make personal contributions, as opposed to 25 per cent of part timers.
“This is a worrying trend. Superannuation is something that needs to be considered by every individual. When anyone decides to become a part time worker they should also think about toping up their personal super contributions - at least to the equivalent of their full time salary.”
1Australian Bureau of Statistics, Working arrangements, Australia, November 2002.
2C. Bye, Job Sharing, Herald Sun, March 2002, Melbourne
3The Association of Australian Superannuation Funds, Do women get as much out of superannuation as men?, January 2003, Sydney.
4C. Bye, Job Sharing, Herald Sun, March 2002, Melbourne
5The Association of Superannuation Funds of Australia Limited, An Adequate Retirement Income?, June 2001
Allan Griffiths is available for interview on 0419 307 319.
For further information, please contact:
Robert Gill
Public Affairs Manager
(03) 9829 8093
0407 431 525
Note to editors:
- Norwich Union Australia is a group of two specialist financial services companies; Navigator and Norwich Union Life. Portfolio Partners, the funds management arm, is aligned with Morley Funds UK. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Norwich Union Australia is part of Aviva plc, the world’s seventh largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva’s principal business activities are long-term savings, funds management and general insurance. It has a market capitalisation of approximately A$34.4 billion at 13/01/03, worldwide premium and investment sales of more than A$76.6 billion from ongoing business and more than A$556 billion in assets under management. The group has 64,000 employees and more than 25 million customers.