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.
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We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
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