POWERED BY MOMENTUM MEDIA
Super gender gap widens
The superannuation gender gap widened to 18% as the early release of super scheme during the COVID-19 pandemic had a greater impact on the average woman’s super balance, according to Colonial First State (CFS).
CFS’ latest research said the gender gap had widened 2% from 16% in 2016, contrary to the belief that the country was inching towards closing the gender super gap.
“While more men accessed their super early during the pandemic, the impact on average super balances of women was more pronounced (21% compared to 18% for men) because of the lower starting balance for women,” its ‘Retirement Realities’ research said.
“The data also showed that men were approximately 20 percentage points more likely than women to sacrifice their salary into super (61% compared to 39%).”
The research also found its members aged under 30 took almost one-third of all early super release payments to total $1.5 billion. It said 41% of those members were yet to start rebuilding their super savings.
CFS general manager, Kelly Power, said: “The gender gap in the Australian superannuation system is a real issue that sees women financially disadvantaged. Coronavirus has pushed us back even further, creating greater urgency for solutions to the retirement realities challenging Australians, particularly women.
“The super industry and the government must unite to create a system that closes the gender gap for good. Specific measures such as mandating super contributions on paid parental leave and removing the $450 per month threshold for superannuation to be paid will improve the retirement savings adequacy for low-income earners and casual workers, many of whom are women.”
The research also found that women between the age of 50 to 64 years who sought financial advice made a 199% higher average voluntary contribution in 2020 than women who did not seek advice. Advised males were 85% ahead of the non-advised.
“It’s encouraging to see that female members recognise the importance of super as they approach retirement. With help from their adviser, they can contribute extra to their super from any spare cash, including any inheritance or dividend payments, or sale of property,” Power said.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
36.43 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
35.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
