Super Freedom: a woman’s guide to superannuation

WOMEN on average retire with less than half as much superannuation as men. This is unfortunately an inequality we can’t expect to turn around overnight – but that doesn’t mean we’re powerless.

The Australian Institute of Superannuation Trustees and the Association of Superannuation Funds of Australia  – both of which have women as chief executive officers – have long championed the cause of improving the retirement prospects of women. (See The fight for women’s super). But while industry lobbyists dog it out for new legislation, we’ve also got to take the wheel ourselves.

This is where Trish Power comes in. She’s the author of Superannuation for Dummies, an occasional SuperLiving contributor and the mastermind of the superannuation info site SuperGuide. Her new book Super Freedom: A Woman’s Guide to Superannuation demonstrates how women can take control of their finances and design independent, stress-free retirements.

Power says much of the planning advice and information available out there isn’t exactly tailored for women. With this in mind, Super Freedom takes the female angle on money matters. The approach is less hung up on the nuts and bolts of super rules and more results-focused. What do you need to retire comfortably and maintain your lifestyle? Instead of just explaining how super works, the book shows you how to use an unruly savings system to meet your own desired ends.

Super Freedom knows planning for retirement is about life, not money. The step-by-step methods outlined by Power are practical procedures for achieving goals. Everything comes together under a strategy of personal decision-making, financial stocktakes and making the realities mesh.

The number crunching in Super Freedom is intuitive and plainly explained, basically common sense budget stuff. Power draws up tips and case studies that paint work/retirement scenarios that are utterly relatable. One sketch charts the financial future of a 45-year-old woman with little in super and even less in expectations for a nest egg. Another follows a 55-year-old mother who has only worked casual low-pay jobs, divorced late in life but still has a good 10 years to boost her savings.

The theoretics feel real and help bring the unwieldy world of retirement planning to a human level. In each circumstance, various possible financial futures are revealed based on the course of action taken. Will you just “stay the course” and do nothing particular to bolster savings? Will you chip in a little, a lot or make major monthly investments? What will your age pension look like? Are you eligible? Will you claim as a single person or a couple?

Other chapters follow the potential of different super strategies including contribution splitting, spouse contributions and a practical plan of attack to achieve the good life (and a million dollars). Super Freedom covers a lot of the big questions which are by no means obviously answered but may seem too simple to ask a financial advisor. Who really invests my super money? When should I stop working? What tax do I pay on super in retirement? These are not just questions of accounting and bookkeeping – they represent an effort to take control of your future and what’s rightfully yours.

Power is a highly regarded authority on superannuation and a prolific writer on financial issues. She’s the author of several books on investment, presents seminars, conferences on super and is interviewed regularly on radio. Her writing is no-nonsense, jargon-free and extremely readable. In the chatty, approachable style of the For Dummies books, Super Freedom is down-to-earth and acknowledges with good humour that super is commonly yawned at as a boring subject.

Power’s education efforts also extend to managing a couple of financial websites and her familiarity with internet publishing works wonders in the hardcopy book. Super Freedom is organised logically but is easy to skip around, like clicking through a website. Every other page is formatted with quick, easy-to-read charts or intuitive checklists. Tips and warnings are sprinkled throughout the book like online pop-up ads.

Super Freedom is a straight-forward guide to an often-perplexing transition in our lives. Practical, light and unassuming, it’s the ideal handbook for anyone who wants the most out of their retirement but feels overwhelmed or intimidated by the whole affair.