Case study 4 (age 55): Lily’s loving her new retirement plan

Sahn chats to her friend Lily about her new optimistic view on the marvels of her superannuation account. Lily, aged 55, is philosophical about her own financial position. She has spent most of her life rearing her children and, until now, worked in low-paid jobs casually and part time before getting divorced late in life. She has $70 000 in super, which she understands will mean that she can get the full Age Pension plus a few thousand extra each year from her superannuation savings. Lily is forgetting one thing. She hasn’t retired yet, which means she still has 10 years of compulsory employer super contributions to be paid into her super account. Lily also now earns $50 000 a year, which means just for turning up for work her employer co....