Women’s super shortfall still needs resolution: ASFA
Philippa Smith
The average superannuation balances of women and other population demographics are lagging significantly, according to a recent study conducted by the Association of Superannuation Funds of Australia (ASFA).
The ASFA report, Are Retirement Savings on Track, shows some sectors of the population, particularly women, lack the superannuation savings required to achieve even a modest standard of living in retirement.
It found the average superannuation balances women achieved in 2004 were $23,900 versus $56,400 for men, with average payouts in the same year of $37,000 for women and $110,000 for men.
ASFA estimates average retirement payouts in 2006 were $45,000 for women and $130,000 for men.
Drawing on newly available Australian Bureau of Statistics (ABS) unit records collected during its 2003-04 Survey of Income and Housing, ASFA director of research Ross Clare compiled the report.
While acknowledging the progress that is being made in spreading superannuation across a larger proportion of the population, Clare said the report highlighted a number of groups needing additional assistance in this regard.
“The picture that emerges is of considerable progress … however, average balances are still relatively low, and there are a number of groups — such as women — who need further assistance and encouragement to save if they are to achieve even a modest standard of living in retirement,” he said.
ASFA is leveraging the report’s findings to support its call for an extension of the Government’s superannuation co-contribution scheme.
“Further strategies such as extending the super co-contribution are needed to help a greater proportion of people achieve a more adequate retirement income,” said Philippa Smith, ASFA chief executive officer.
“If the Government decided to carry this forward as a permanent feature, it would significantly increase the retirement benefit for low income earners, particularly women because their lower average incomes make them more likely to qualify for it.”
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