The superannuation $450 monthly income threshold needs to be removed as 18 per cent of women who have a job do not reach the threshold, Australian Institute of Superannuation Trustee (AIST) and Women in Super said in the lead up to International Women’s Day.
Data from an AIST commissioned Essential Media survey found that twice the amount of women than men were affected by the threshold limit, with the highest proportion affecting women between the ages of 18 and 35.
Another 42 per cent of women who earned less than $450 a month from one employer were not receiving super.
AIST acting chief executive, Eva Scheerlinck, said super should be universal and the threshold needed to be removed, particularly as modern payroll systems made it easier for employers to meet their obligations.
“With increasing casualisation of the workforce, the $450 threshold will continue to impact on both women and men – many of whom are low income earners and need all the super they can get,” she said.
Women in Super chair, Cate Wood, said: “One-in-three women currently retire in poverty and it is time to break with the past and take the fair and rightful step forward by implementing structural changes that deliver real improvements to women”.
If female school or university students volunteer for work experience in finance, organisations have a “duty” to offer it to them, according to a senior funds management executive.
New research from Aware Super on the occasion of Equal Pay Day reveals Australia’s 13 per cent gender pay gap will equate to a $93,000 deficit in women’s super balances compared to men at retirement.
With only 25% of women currently using a financial adviser and many lacking financial confidence, they are losing thousands in superannuation.
The significant difference in women’s average superannuation account balances, compared to their male counterparts, continues to concern industry professionals.
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