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Policy rethink needed on retirement savings gender gap
Women in Super (WIS) national chair Cate Wood has called for a "policy rethink" in order to bridge the gender gap in Australians' retirement savings.
Following the release of a Rice Warner Actuaries report that said super funds and employers could do more to encourage women to engage with their retirement savings, Wood said time out from the workforce was a critical factor.
"The case studies in the report shine a light on the impact of the gender pay gap on female retirement savings, and then overlay the impact of time out of the workforce and part-time work - all common experiences for many women," she said.
"When all factors are in play, the shortfall in a woman's retirement savings is truly shocking."
Rice Warner's report said the Government to abolish the $450 threshold and make superannuation contributions on parental leave.
It said the superannuation system had been designed around the paid work system, which disadvantaged women. Lower pay as well as parental duties and earlier retirement were cited as ways in which women were disadvantaged.
The system needed to protect future female generations from suffering a similar fate to today's retiring females who had 50 per cent less retirement savings than men on average, Rice Warner deputy chief executive Melissa Fuller said.
Launched at the WIS morning tea at the Association of Superannuation Funds of Australia (ASFA) conference, the report said Government, super funds and employers all had an obligation to close the gap.
Fuller said super funds had an obligation to reach out to younger members, particularly females to ensure they took an interest in their retirement savings.
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