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Super gender gap in focus on women's day
Some of Australia's largest superannuation industry bodies have used International Women's Day as a springboard to highlight the ongoing issues women face in preparing for their retirement.
The Australian Institute of Superannuation Trustees (AIST) and Women in Super (WIS) said women needed a better deal from the super system.
AIST president Cate Wood said the "two killers" of lower pay and time spent out of work meant women retired with almost half the super men had.
"Despite more than 20 years of compulsory superannuation, we still haven't come up with the right policies to narrow the gender gap in superannuation," she said.
Wood highlighted AIST and WIS support for the Government's low-income super contribution scheme, but said more could be done.
"We need to plug the gaps in the current system, provide opportunities and incentives for women to 'catch-up' their super savings, and find a way to improve the retirement outcomes for women and men who take time out of the workforce to care for others," she said.
Wood said some immediate measures to help address gender disparities would include:
- Removing the $450 monthly income threshold for exemptions on compulsory super contributions
- A super component to the Government-funded parental leave scheme
- A return to work super bonus for women who have left the workforce to raise children
- A permanent increase to the over-50s concessional contributions cap for those with balances under $500,000.
The Association of Superannuation Funds of Australia (ASFA) has urged employers to give women 60 minutes of their time today to help them take control of their super.
Women hold only 37 per cent of super account balances while men held 63 per cent, ASFA said.
ASFA chief executive Pauline Vamos said nearly 90 per cent of women had insufficient super to support a comfortable retirement.
"For many women finding the time to take control of their super is a real struggle. By giving women this time on International Women's Day, we are taking an important first step in helping women close the superannuation gender gap and take control of their super," she said.
ASFA encouraged women to simplify their super, take an active interest and make voluntary contributions.
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