Meet our friend Anna

Anna is now in her 70s and, thanks to some savvy financial outcome modelling from the Super Members Council, we can tell you that:

• Anna’s choice to pursue higher education could result in $335,600 more in superannuation and $1.2 million more in lifetime income.
• Her voluntary super contributions could increase her retirement savings by up to $97,500 and boost annual retirement income by $2,200.
• Taking time out for children likely reduced her super by $55,500 and lifetime disposable income by $649,400.Our fictional friend did not escape the motherhood penalty but, generally speaking, her decisions likely contributed to a better outcome at retirement.

SMC estimates that Anna will have about $863,000 in super when she retires at 65. Using ASIC’s MoneySmart retirement planner, her estimated annual income in retirement (until age 92) would be around $68,000.

Anna’s estimated super balance at retirement assumes that she is in a top-performing fund. If she was in a low-performing fund, SMC estimates that her balance at retirement could be $268,000 less. The ATO has a useful YourSuper comparison tool that you can use to make sure you are with a top-performing fund.

Anna looks to have achieved economic security, but this is not the story for all Australian women – especially those in marginalised communities. While we continue to lag in the financial literacy stakes, if we want to make the calls in our own lives, we need to keep learning.