Retirement
Women need 12% super guarantee: AIST
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.
Women need 12% super guarantee: AIST
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.
About the author
About the author
Superannuation
APRA faces heat on industry fund donations
The prudential regulator has been grilled by the House economics committee around the appropriateness of industry fund political donations and whether such donations constitute a breach of sole purpos...Read more
Superannuation
Super reforms to save members thousands but should go further
The “Your Future, Your Super” reforms announced during the federal budget are heading in the right direction, with members potentially benefiting, an industry expert has said. ...Read more
Superannuation
Australia slips in global pension index
The Australian superannuation system has been rated at B, falling to fourth place, new research has revealed. ...Read more
Superannuation
Early super payments slow to under $200m
Less than $200 million was paid out of the super system in the second week of October, as the popularity of the government’s early release scheme looks to be slowing further following the release of...Read more
Superannuation
‘Impressive’ super erases most COVID-19 losses
Australian superannuation has erased most of the COVID-19 downturn following a positive September quarter, new research has shown. ...Read more
Superannuation
1.2m Australians lose in tax offset lag
The Treasury’s latest tax cuts will see more than 1.2 million low-income earners paying a higher rate of tax on their superannuation contributions, with funds arguing changing the tax rate could add...Read more
Superannuation
Could you be stuck in a poor-performing fund?
The government’s superannuation reforms to eliminate multiple superannuation accounts could have unintended consequences, with older Australians locked into financial decisions made by their teenage...Read more
Superannuation
Big super pushes for gender parity
One of Australia’s largest superannuation funds has launched an investor-led initiative that will see women fill at least 40 per cent of the executive roles in the ASX 200 over the next decade. ...Read more
Superannuation
APRA faces heat on industry fund donations
The prudential regulator has been grilled by the House economics committee around the appropriateness of industry fund political donations and whether such donations constitute a breach of sole purpos...Read more
Superannuation
Super reforms to save members thousands but should go further
The “Your Future, Your Super” reforms announced during the federal budget are heading in the right direction, with members potentially benefiting, an industry expert has said. ...Read more
Superannuation
Australia slips in global pension index
The Australian superannuation system has been rated at B, falling to fourth place, new research has revealed. ...Read more
Superannuation
Early super payments slow to under $200m
Less than $200 million was paid out of the super system in the second week of October, as the popularity of the government’s early release scheme looks to be slowing further following the release of...Read more
Superannuation
‘Impressive’ super erases most COVID-19 losses
Australian superannuation has erased most of the COVID-19 downturn following a positive September quarter, new research has shown. ...Read more
Superannuation
1.2m Australians lose in tax offset lag
The Treasury’s latest tax cuts will see more than 1.2 million low-income earners paying a higher rate of tax on their superannuation contributions, with funds arguing changing the tax rate could add...Read more
Superannuation
Could you be stuck in a poor-performing fund?
The government’s superannuation reforms to eliminate multiple superannuation accounts could have unintended consequences, with older Australians locked into financial decisions made by their teenage...Read more
Superannuation
Big super pushes for gender parity
One of Australia’s largest superannuation funds has launched an investor-led initiative that will see women fill at least 40 per cent of the executive roles in the ASX 200 over the next decade. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
