Single Mums lose thousands through superannuation co-contribution rules
By Helen Said, semi-retired single mum Single mums need superannuation to look after ourselves later in life. We are less likely to own our own homes, and more likely to become homeless if we don’t have retirement savings to fall back on. Unfortunately, some Australian Tax Office superannuation rules are stacked against single mothers. The government offers low-income earners up to $500 per year, as a superannuation co-contribution, until we are 71 years old. If single mums were given this money, we could retire with a nest egg of tens of thousands of dollars or more. But most single mums will never get this money, at least not while we are bringing up children. To get $500 a year from the government, paid into your superannuation account, you need to lock away $1000 every year. When you are struggling to pay rent and put food on the table for your children, how can you lock away $1000 each year for your old age? How it works : if you earn less than $47,488 thi...