Policy needed to help women’s retirement income
Putting a gender lens on policy development and tax will help drive changes to stop women retiring in poverty, according to a panel.
The panel speaking at Money Management and Super Review's Women's Wealth Breakfast this morning, agreed tax reform was key to moving the issue forward.
The Australian Institute of Superannuation Trustees (AIST) senior policy adviser, Karen Volpato, said the two worst features hindering women's retirement income were the gender pay gap and the fairness of the super system.
"Putting a gender lens on policy development along with measuring progress through data on this can drive change," she said.
"The biggest issue is tax because women and men pay the same when putting money in the system, and while it's in the system. The reality is that women don't save enough to overtake the tax-free threshold after age 60."
Agreeing, Workplace Gender Equality Agency acting director, Louise McSorley, said the gender pay gap needed to be addressed as it is "caused by a complex range of cultural and structural areas".
"If you're asking me to save a little bit more to put in super because I'm earning less than a man so that I'll have a reasonable retirement that's a bit unfair," McSorley said.
"Why do women have to fix the problems themselves? So fixing tax system so that we have a gender lens on it that recognises that differential impact and women's different circumstances is absolutely critical."
Association of Financial Advisers national president, Deborah Kent, said she could not understand why there was still a difference in pay.
"By closing the gap on equal pay it obviously means females then will have more money to save for retirement," Kent said.
"It's very sad to think there are so many women that retire in poverty. It just shouldn't happen and I do see them quite a lot."
Recommended for you
The RBA has made its latest interest rate decision at the the final monetary policy meeting of 2025.
State Street is actively seeking to launch ETFs in the Australian government, corporate and high yield bond space next year in order to capitalise on the phase-out of AT1 hybrids.
Greater consistency across the ASIC adviser exam has helped boost the number of first-time candidates this year with many opting to sit before undertaking a Professional Year.
Financial advice practice Eureka Whittaker Macnaught is in the process of acquiring three firms to boost its annual revenue to $25 million.
