Women in Super (WIS) has called on the Government to introduce measures to help make superannuation more equitable for women in their 2018-19 pre-budget submission.
The organisation urged the government to implement six reforms that would improve equity in retirement for men and women. They pointed to the facts that women retire with 47 per cent less super than men, more than 40 per cent of older single women live in poverty and women are more dependent than men on the age pension as proof of the necessity of their proposals.
WIS called for an additional $1,000 government super contribution for low income earners, an increase of the superannuation guarantee to 12 per cent, payment superannuation while on the Paid Parental Leave scheme, and the removal of the $450 monthly threshold.
WIS’ submission said that women were hit hard by the $450 threshold as they make up the majority of part-time and casual workers. It was also more common to work for multiple employers in female-dominated industries, such as retail, hospitality and nursing, making it difficult for women to reach $450 in monthly earnings from a single employer.
They also called for ongoing tracking of the gender super gap, asking that a gender impact statement be published for any changes to age pension or retirement income policy.
Finally, they asked that consideration be given to the possibility of earnings from the gig economy attracting super. Many women who are caregivers, and thus require flexible work arrangements, participate in this type of work.
WIS said that we still have a long way to go in securing safe economic positions for women in retirement.
“The cost to the economy of inaction in this area is growing as not only current, but future generations of women, will continue to retire with insufficient funds until the inherently discriminatory nature of the current retirement system is changed,” the submission said.
