Retirement
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Retirement
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men on average, according to Katrina McPhee, the fund's Chief of Staff.
Speaking exclusively to The Business Of, a podcast from the University of New South Wales Business School, Ms McPhee highlighted the long-term consequences of the gender pay gap, stating, "Where we might have a 13 per cent pay gap, by the time you reach retirement, that's a 30 to 40 per cent retirement gap."
She added, "Older females, retired females, are the fastest growing population within the homeless community because there's been this baked-in inequality in the system."
While superannuation funds do not determine salaries, Ms McPhee emphasized their influential voice and important role in shaping policy. She noted that since the royal commission, the system has become more competitive and human-centred, evolving from a "gentlemen's agreement-style, industrial relations-style industry" to a more dynamic one.
Aware Super also faces the challenge of balancing short-term and long-term investment perspectives to maximize returns for members. Ms McPhee stressed the importance of adopting a long-term view, stating, "It's one thing to have money to retire, but if we don't have a wonderful world to live in, it feels counterintuitive. So climate change and energy transition are really important to us."
One example of Aware Super's long-term investment strategy is their "key worker affordable housing plan," which involves a build-to-rent program. Ms McPhee explained, "We started looking at the build-to-rent market. How might we become a landlord, essentially, as a superannuation fund? And how might we then offer up more affordable rent to essential workers? So that's what we did."
She added, "People often say, 'Are you, by giving more affordable housing, giving up rent that would ultimately be returned for members? But what we found is by giving that to teachers, nurses and police officers, they generally stay in properties far longer, they do less damage to the properties. And the communities that they build have been extraordinary. So what we're seeing is the profitability of those rental agreements over a long time."
Dr Juliet Bourke, the host of The Business Of and a global consultant and academic at UNSW Business School, commented on the potential for organizations with institutional power to achieve wide-scale social good, like closing the retirement pay gap, following a moment of reckoning like a royal commission.
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men on average, according to Katrina McPhee, the fund's Chief of Staff.
Speaking exclusively to The Business Of, a podcast from the University of New South Wales Business School, Ms McPhee highlighted the long-term consequences of the gender pay gap, stating, "Where we might have a 13 per cent pay gap, by the time you reach retirement, that's a 30 to 40 per cent retirement gap."
She added, "Older females, retired females, are the fastest growing population within the homeless community because there's been this baked-in inequality in the system."
While superannuation funds do not determine salaries, Ms McPhee emphasized their influential voice and important role in shaping policy. She noted that since the royal commission, the system has become more competitive and human-centred, evolving from a "gentlemen's agreement-style, industrial relations-style industry" to a more dynamic one.
Aware Super also faces the challenge of balancing short-term and long-term investment perspectives to maximize returns for members. Ms McPhee stressed the importance of adopting a long-term view, stating, "It's one thing to have money to retire, but if we don't have a wonderful world to live in, it feels counterintuitive. So climate change and energy transition are really important to us."
One example of Aware Super's long-term investment strategy is their "key worker affordable housing plan," which involves a build-to-rent program. Ms McPhee explained, "We started looking at the build-to-rent market. How might we become a landlord, essentially, as a superannuation fund? And how might we then offer up more affordable rent to essential workers? So that's what we did."
She added, "People often say, 'Are you, by giving more affordable housing, giving up rent that would ultimately be returned for members? But what we found is by giving that to teachers, nurses and police officers, they generally stay in properties far longer, they do less damage to the properties. And the communities that they build have been extraordinary. So what we're seeing is the profitability of those rental agreements over a long time."
Dr Juliet Bourke, the host of The Business Of and a global consultant and academic at UNSW Business School, commented on the potential for organizations with institutional power to achieve wide-scale social good, like closing the retirement pay gap, following a moment of reckoning like a royal commission.
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men on average, according to Katrina McPhee, the fund's Chief of Staff.
Speaking exclusively to The Business Of, a podcast from the University of New South Wales Business School, Ms McPhee highlighted the long-term consequences of the gender pay gap, stating, "Where we might have a 13 per cent pay gap, by the time you reach retirement, that's a 30 to 40 per cent retirement gap."
She added, "Older females, retired females, are the fastest growing population within the homeless community because there's been this baked-in inequality in the system."
While superannuation funds do not determine salaries, Ms McPhee emphasized their influential voice and important role in shaping policy. She noted that since the royal commission, the system has become more competitive and human-centred, evolving from a "gentlemen's agreement-style, industrial relations-style industry" to a more dynamic one.
Aware Super also faces the challenge of balancing short-term and long-term investment perspectives to maximize returns for members. Ms McPhee stressed the importance of adopting a long-term view, stating, "It's one thing to have money to retire, but if we don't have a wonderful world to live in, it feels counterintuitive. So climate change and energy transition are really important to us."
One example of Aware Super's long-term investment strategy is their "key worker affordable housing plan," which involves a build-to-rent program. Ms McPhee explained, "We started looking at the build-to-rent market. How might we become a landlord, essentially, as a superannuation fund? And how might we then offer up more affordable rent to essential workers? So that's what we did."
She added, "People often say, 'Are you, by giving more affordable housing, giving up rent that would ultimately be returned for members? But what we found is by giving that to teachers, nurses and police officers, they generally stay in properties far longer, they do less damage to the properties. And the communities that they build have been extraordinary. So what we're seeing is the profitability of those rental agreements over a long time."
Dr Juliet Bourke, the host of The Business Of and a global consultant and academic at UNSW Business School, commented on the potential for organizations with institutional power to achieve wide-scale social good, like closing the retirement pay gap, following a moment of reckoning like a royal commission.
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Super returns fall into the red for FY22
Unless a recovery takes place in the coming weeks, super funds will experience their fifth negative financial year since the introduction of compulsory super. Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Super returns fall into the red for FY22
Unless a recovery takes place in the coming weeks, super funds will experience their fifth negative financial year since the introduction of compulsory super. Read more