Women in Super: super is grossly inequitable, especially now
/New research by Per Capita, commissioned by Women in Super, has revealed that Australia’s superannuation system is deeply inadequate when it comes to financial security differences between genders. The Herstory of Superannuation paper says the superannuation system needs to be more equitable between genders, even though we can pat ourselves on the back for having one of the best retirement systems in the world.
Women currently have lower workforce participation, earn less and have far less superannuation savings, which the superannuation system - based on work and earnings - does not account for. The more you earn, the more savings you have. While women still do the lion’s share of unpaid labour, men have higher paid work-based superannuation accounts.
Key findings include:
Over 24 per cent more women than men receive the Age Pension
Out of those, 32 per cent more women than men are on the full rate, with 13 per cent more on a part pension
Over 500,000 single women in Australia (a third of women aged 65 and over) rely on the Age Pension as their sole source of income
Women in Super are vocal advocates of increasing the superannuation guarantee to 12 per cent (up from 9 per cent) to improve retirement outcomes for women. The paper also urges policymakers to remove the $450 monthly earnings threshold for payment of super, and for there to be superannuation paid on paid parental leave payments. Another recommendation is an additional $1,000 contribution by the government into superannuation for low-income earners.
The adverse outcomes from the pandemic and early release of super scheme disproportionally affects women, widens the retirement gender gap, and requires gender-specific analysis and recovery plans, the paper says.
