Government must keep SG increase

The superannuation savings of a significant proportion of women would be substantially affected should the Government fail to increase the superannuation guarantee (SG) from 9.5 per cent to 12 per cent, according to Rice Warner statistics.

The modelling showed a 25-year old woman earning $35,000 a year stood to lose 15 per cent, over $41,000, from her retirement balance if the government chose to abandon the SG increase.

The statistics also showed that having time off to have two children and working part-time for nine years would reduce her savings by a further $35,000.

The results followed a Grattan Institute report released earlier this week calling on the Government to abandon any increased to the SG.

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Women in Super chair, Cate Wood, dismissed the Institute’s position, suggesting that it risked jeopardising the retirement future of women.  

“The Government has already delayed the SG increase, leaving many women poorer for it. Australian women cannot afford further delays,” she said.

Noting that 40 per cent of older, single retired women experience economic insecurity in retirement, Wood said the policy settings needed to change in order for the outcomes to change.

“Currently, more than half of working women do not receive any of the $30 billion in tax concessions spent each year to help Australians save for their retirement,” she said.  

“These concessions could be better targeted. An additional annual government contribution into the super accounts of low income earners is something policy-makers could consider.”

Women in Super also suggested the removal of the $450 monthly super pay threshold, paying super on parental leave and better monitoring the impacts of policy change.