Joint superannuation accounts will not do anything to improve retirement outcomes for women, according to Industry Super Australia (ISA).
ISA said in its submission into the Inquiry into the economic security for women in retirement that introducing joint super accounts would not increase the amount of super women receive over the course of their working lives.
ISA noted that one-third of women are not part of a couple at retirement and that this figure is increasing.
“Forty per cent of couples do not achieve a comfortable standard of living at retirement. In fact,women with low superannuation savings are much more likely to be partnered with a man with low superannuation than high superannuation,” its submission said.
“Allowing these couples to combine their superannuation into a joint account will not do anything to improve the adequacy or equity of women’s retirement outcomes. Indeed, improving adequacy for women (particularly lower paid women) whether single or married, will go a long way to fixing the issue of inadequacy in the system overall.
“At law, women are entitled to half their partner’s super on separation. Introducing joint superannuation accounts will not add to this entitlement in any way.”
ISA said there was no reason to assume the fact that two people are in a relationship means that they share the same preservation age or investment profile.
“It is not clear how this would be accommodated within a joint superannuation account. Achieving this would inevitably come at a cost which could easily eliminate any small saving in fees,” the submission said.
