How a divorce or relationship break down could jeopardise your retirement savings – so here’s how to safeguard your superannuation
- A divorce or relationship breakup have the potential to erode super savings
- Women in Super chief Sandra Buckley said dividing up assets was very difficult
- Federal government wants to change the law letting courts access tax data
A divorce or a relationship break-up could have the potential to jeopardise retirement savings.
Australians are already struggling to save up the necessary $500,000 recommended so a single person can have a comfortable requirement.
A relationship breakdown is even more of a hindrance to accumulating enough superannuation, especially when assets are combined under a super splitting arrangement.
Women in Super chief executive Sandra Buckley said women were abandoning their superannuation because dividing up retirement assets were too tricky without legal advice.
A divorce or a relationship break-up have the potential to jeopardise retirement savings. Women in Super chief executive Sandra Buckley said women were abandoning their superannuation because dividing up retirement assets were too tricky without legal advice. Stock image
‘Too many women are walking away from their share of a relationship’s assets as it is difficult to get information on superannuation assets held especially if a partner is refusing to co-operate,’ she said.
The federal government wants to change the law so divorce lawyers in the Family Court have access to Australian Taxation Office data.
Attorney-General Michaelia Cash and Superannuation Minister Jane Hume are proposing to make it harder for estranged couples to hide or under-disclose superannuation assets in family law proceedings.
They said the reforms would ‘reduce the time, cost and complexity for parties seeking accurate superannuation information’.
Tania Clarke, the manager of Policy and campaigns at the Women’s Legal Service Victoria, said the changes would make it harder for controlling men to hide their super details.
‘Once this legislation is passed, it will be harder for perpetrators of family violence to hide information about their superannuation accounts, as the court will be able to get that information directly from the ATO,’ she said.
Attorney-General Michaelia Cash (pictured) and Superannuation Minister Jane Hume are proposing to make it harder for estranged couples to hide or under-disclose superannuation assets in family law proceedings
The Association of Superannuation Funds of Australia recommended a single Australian have $535,000 tucked away to live in a bit of style while couples needed $640,000 for an equivalent lifestyle.
Many Australians are a long way from achieving that savings goal with official Australian Bureau of Statistics data showing average super balances of just $286,800 in the final decade before retirement.
Tax office data showed women aged 60 to 64 had even less, with average balances of $280,000 compared with $345,000 for men in the years just before retirement.
Across all age groups women have a lot less than men and are being urged to top up their superannuation.
Their average balances stood at $73,139 in December 2020 – a 17.8 per cent gap compared with the average male balance of $88,934, Colonial First State data showed.
Figures from Colonial First State’s 750,000 accounts showed its average super balances for all age groups stood at just $82,163 in December 2020.