Increased super contributions could help close gender gap

9 March 2021
| By Jassmyn |
image
image
expand image

Superannuation can help address the gender gap in retirement but is not a panacea, according to Rice Warner. 

In an analysis, the research house said super could reinforce efforts to increase female wages relative to males, and to set aside enough for retirement. 

  • It also said female contributions to super could be increased by: 
  • Paying the superannuation guarantee (SG) on paid parental leave – preferably for more than the statutory 18 weeks. Employers and government could share this cost; and 

Looking at targeting females. For example, we could pay additional SG contributions for younger females, say 2%, up to age 30. Backed by strong education, this will empower females to think of their retirement at an earlier age. They should be shown how extra contributions will close the retirement gender gap. 

Rice Warner said those who fell behind could be supported in retirement through social housing and/or increased rental assistance. 

Attribution of the gender gap in superannuation balances at retirement (50th income percentile) 

Source: Rice Warner 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 1 week ago
Kevin Gorman

Super director remuneration ...

10 months 2 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 2 weeks ago

The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members. ...

1 day 15 hours ago

Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award....

2 days 6 hours ago

APRA data shows the CFMEU accounted for 28 per cent of super fund industrial contributions, with the shadow treasurer calling for a prompt investigation into the payments...

3 days 10 hours ago