06 May 2008
NEW mums are being urged to take advantage of a Federal Government scheme that gives lower income earners a super reward of up to $1.50 for every dollar they contribute to a fund.
HESTA Super Fund - which has more than 600,000 members, 85% of whom are women – urged women taking a break from work to have children to use the scheme, which has delivered $1 billion into the super accounts of low and middle income earners this financial year.
HESTA CEO Anne-Marie Corboy encouraged women to invest as much as they could afford, with even a hundred dollars having an impact in the long term.
“The Federal Government will match some investments at a rate of $1.50 for every $1. It’s money for nothing and eligible families with the capacity to invest should jump at the chance,” Ms Corboy said.
“Women typically have half the super savings of men. Time out of the workforce to raise children is a key culprit in the gender gap, so it makes sense for families to take defensive action at this milestone.”
“For someone earning $27,000 who puts in $100 today, which would attract a co-contribution of $150, that would be worth $3,884 in 10 years time, based on an interest rate of 6.25 per cent,” Ms Corboy said.
People thinking of making a contribution relevant to this financial year must act before 30 June.
“We know household budgets are stretched when a new baby arrives but we encourage families to think about the long term benefit of this investment,” Ms Corboy said.
“Women who would usually be ineligible for a co-contribution may find themselves in the eligible income range in the year they have a child, so it’s a great opportunity for them. Other women will find themselves entitled to a greater co-contribution than would otherwise be the case.”
HESTA’s call to action coincides with Mother’s Day. HESTA and Women in Super are long-term sponsors of the Mother’s Day Classic, which will be run on 11 May. This event raises money for the National Breast Cancer Foundation to fund further breast cancer research.
“Mother’s Day is a good time to think about how women can take control of their financial futures and make decisions that benefit themselves and their families in the long haul,” Ms Corboy said.
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