The establishment of a Council of Super Custodians and a Charter of Superannuation Adequacy and Sustainability could be the impetus for overcoming structural flaws in the superannuation system which lead to inequitable outcomes for women, according to Women in Super (WIS) chair and national spokeswomen Cate Wood.
"The Charter and Council will provide an opportunity for a serious examination of how we can overcome the structural flaws in the retirement savings system which lead to such inequitable outcomes for women," she said.
Women currently retire with around half the superannuation savings of men due to a number of factors including unequal pay, family responsibilities, part-time and casual work and impacts on career progression.
"A Charter based on the principles of fairness and equity will compel the Council of Super Custodians to place priority on consideration of measures to ensure that the system delivers improved outcomes for all women," said Wood.
WIS's pre-budget submission includes recommendations for the removal of the $450 monthly earning threshold for superannuation guarantee payments and introducing super guarantee payments on paid parental leave.
Wood said these moves would predominantly benefit low-income earning women.
WIS welcomed changes that would allow women over the age of 50 to ‘catch up' on their super savings but said the group wanted more ‘catch-up' opportunities.
"The increase in the superannuation guarantee contribution from 9 per cent to 12 per cent and the introduction of the low income superannuation contribution (LISC) which refunds the tax paid on superannuation contributions by low income earners are the two most significant measures in the past 10 years which will assist women to save for their retirement," said Wood.
"These measures are supported and applauded by Women in Super; however more needs to be done to overcome the retirement savings gap for women."
