Changes to the super system are not enough to close the gender gap in retirement savings, the Australian Institute of Superannuation Trustees (AIST) believes.
While reforms such as extending the low income super contribution (LISC) scheme and removing the $450 monthly contribution limit are important, AIST said there were external issues to super than can have a much greater impact on either the gender gap or the fairness of the super system.
AIST said the major contributing factors to the retirement savings gap are pay inequity and constraints on female workplace participation.
AIST chief executive, Tom Garcia, said improving women’s retirement outcomes is not just a matter of pulling levers inside the super system.
“If we are going to close the gap, we need a holistic approach, which includes a full examination of relevant policies outside of super,” Garcia said.
“Legislating objectives for superannuation will hopefully put an end to ad hoc policy tinkering and provide a robust framework with which to assess any future policy proposals.
Garcia noted without fresh policies there should not be any expectation for any improvement.
“After 25 years of compulsory super this is a long-overdue measure that will be particularly valuable both in tackling the gender savings gap and assisting the current Tax Inquiry,” he said.
