The Australian Institute of Superannuation Trustees (AIST) has gone on the record to say that the legislated increase of the superannuation guarantee to 12 per cent is key to improving the retirement outcomes for Australian women.
The lifting of the compulsory super contributions is necessary to address the unique challenges facing women when it comes to paid work and career breaks, according to the AIST’s CEO, Eva Scheerlinck.
She said, currently, an estimated 40 per cent of single women are retiring in poverty, with older women “the fastest-growing cohort of homeless people”.
“Leaving super at 9.5 per cent will simply condemn more women to financial hardship in retirement at a time when many do not have [the] safety net of home ownership relied upon by previous generations,” she warned.
She also commented on the freedom of information documents referenced by media outlets on the weekend in which the Australian Treasury noted that increasing the compulsory super guarantee to 12 per cent would widen the gender savings gap, but said the retirement savings gap between women and men needed to be addressed in other ways.
She was disappointed that the government has not made any recommendations to reduce the gender gap, despite identifying problems “such as the gender wage gap and the impact of career breaks on women”.
“But it hasn’t provided any solutions,” Ms Scheerlinck continued.
“Instead, we have Liberal backbenchers and the Grattan Institute proposing to take away the one solution that will make a difference to women.
“Any move to renege the legislated increase SG to 12 per cent is not going to help millions of Australian women retire with dignity.”
Alongside Women in Super, the AIST supports the use of targeted measures to reduce the gender gap in retirement savings.
These measures include:
- The provision of an additional $1,000 contribution annually into the super of women and other low-income earners, boosting their balance and helping them make up the gap.
- A removal of the $450 monthly pay threshold which sees an estimated 220,000 women miss out on super every year.
- Ensuring that super is paid on parental leave to ensure it is treated like all other types of leave.
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