Since the word Mumpreneur hit the English dictionary in 2011, the number of women starting up and succeeding in business has risen dramatically. But despite this, women are still retiring on significantly less than men and are relying on their business as a retirement plan.
While it’s nice to think that the vast majority of people will succeed in business, the fact is that small business land is tough for everyone.
Indeed unless you form a company structure, individuals who are self employed are not bound by law to pay themselves superannuation. This means the onus is on you to contribute to your fund.
To help address the inadequacy of female retirement savings, which is less than half the savings of men, national advocacy and networking group Women in Super is calling for an increase in the superannuation guarantee (SG) from 9 to 12%.
In a pre-budget submission to government the group said such a move “would not eradicate the super savings gap but it would go some way towards helping women bridge that gap.”
The group added that it would also like to see SG applied to paid parental leave; due consideration given to an SG scheme for the self-employed given “increasing numbers of women are becoming ‘mumpreneurs’ and do not make provision for their retirement as the majority believe their business will be their retirement fund.”
To find out more about contributing to a super fund click here or visit ASIC‘s women’s money tool kit.