Even if the gender pay gap closed, workforce spells and compound returns would see women continuing to retire with less super than men, new data from the Australian Bureau of Statistics (ABS) has shown.
Industry Super Australia adviser, Phil Gallagher, said the data plotted both pay and superannuation gaps by age and salary, and found that men aged 55-64 saved 47.4 per cent more in their super accounts than women.
Industry Super head of consumer advocacy, Sarah Saunders, said the findings highlighted interrupted work patterns and lost compound returns on women’s retirement savings, and called for the monthly $450 Super Guarantee threshold that impacted women working part time or casual to be discarded.
“While a woman might return to a good salary after time out to care for a child or an ageing parent, she will have little chance of ever making up the super shortfall,” said Saunders. “That women today face thirty years in retirement with half as much super as men – because the system doesn’t put an economic value on unpaid care is unacceptable.”
The Industry Super ABS data also showed that:
Saunders said the super shortfall emphasised the importance of ensuring that the Age Pension safety net kept pace with livings standards by continuing to link it to wages rather than CPI.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
Add new comment