Retirement
Could a fairer superannuation system solve the retirement gap?
A new superannuation fund wants to reduce the gender super gap through the use of innovative saving technology it says is designed for women to improve their financial outcomes.
Could a fairer superannuation system solve the retirement gap?
A new superannuation fund wants to reduce the gender super gap through the use of innovative saving technology it says is designed for women to improve their financial outcomes.
With women in their late 50s becoming the fastest growing cohort of homeless Australians, “the blind spots” in the current system are becoming far more visible.
Women leaving the workforce to have children or provide unpaid contributions to their family are putting themselves at a far greater risk of poverty and homelessness when they retire.
In conversation with nestegg, founder and executive chair of FairVine Super, Sangeeta Venkatesan, explained how changing the superannuation system could improve financial outcomes for women.
One way to reduce the gender pay gap through superannuation is to reduce the fees charged when women are no longer in the workforce.
“The simple logic is: You don’t earn money you shouldn’t have to pay,” Ms Venkatesan said.
FairVine has also noted how women’s superannuation balances can be increased by an additional $123,000 through round up features, with everyday purchases being rounded up to the nearest dollar, where the loose change is then able to be contributed to superannuation.
“Every little bit goes into super as additional super instead of spending. While these are small amounts, over a period of 30 years, they add to approximately $123,000 super,” Ms Venkatesan said.
Noting most women have less than $50,000 in retirement, this can greatly help women grow their superannuation balances, according to the founder.
Ms Venkatesan then indicated how retail brand partnerships that reward women for spending with them is another way of reducing the gap in superannuation outcomes for men and women.
Ms Venkatesan went on to outline how couples should take advantage of tax incentives, including splitting super contributions between a working and non-working spouse.
“If one partner is taking time off for maternity leave, the spouse can contribute his or her super into their partners account, increasing accordingly, which helps from a tax perspective for the other partner,” Ms Venkatesan said.
nestegg has previously reported on how members can top up their superannuation balances through online spending.
About the author
About the author
Superannuation
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 ...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
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 ...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