Retirement
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19.
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19.
The current national gender pay gap of 12% means women must work an additional 50 days into the new financial year to earn the same as men did in the previous year, according to the Workplace Gender Equality Agency (WGEA).
Rose Kerlin, AustralianSuper's Chief Member Officer, highlighted the far-reaching consequences of this disparity.
"The gender pay gap doesn't just affect wages; it permeates every aspect of women's lives," Ms Kerlin said. "Women, on average, earn $238 less per week than men, significantly impacting their lifetime earnings, superannuation savings, and retirement security."
AustralianSuper's analysis reveals stark differences in retirement outcomes between men and women. A 30-year-old man with average earnings can expect a superannuation balance of $882,000 at retirement age, compared to $737,000 for a woman - a $145,000 difference.
The fund's insights also show:
- Only 39% of women feel confident about living well in retirement, compared to 53% of men.
- Women taking 10 years out of the workforce have on average 12% less income in retirement.
- Women aged 60-64 have an average super balance of $260,981, compared to $338,655 for men.
Ms Kerlin emphasised the need for collaborative action from businesses, government, and individuals to address these inequalities.
"Employers can play an important role in supporting women's retirement savings by paying super on parental leave, and offering flexible work arrangements," she said.
The fund welcomed the government's recent introduction of superannuation payments on Paid Parental Leave but stressed more action is needed.
Ms Kerlin offered advice for women to improve their retirement prospects, including discussing superannuation options with employers, collaborating with partners on contributions, and taking an active role in managing their super.
"Your employer contributions are one piece of the puzzle, but you should also take ownership and be engaged with your super," she said.
AustralianSuper, which manages over $341 billion for more than 3.4 million members, has been recognised as a WGEA Employer of Choice for Gender Equality for 13 years.
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