Women worse off than men in retirement

Fiona Reynolds

Lower incomes and workforce participation among women could leave them $100,000 worse off than men in retirement, according to the Australian Institute of Superannuation Trustees (AIST).

Fiona Reynolds, chief executive of AIST, said women who earn 15 per cent less than men and took career breaks to raise children jeopardised their retirement.

“The 15 per cent gender wage gap not only undervalues women’s work but also undervalues their retirement security. Even with the full benefits of compulsory superannuation, many generation X and generation Y women will be substantially reliant on the age pension unless more can be done to improve the retirement outcomes for women,” Reynolds said.

In a submission to the Government inquiry on wage equity and female participation in the workforce, the AIST recommended that the Government introduce paid maternity leave with superannuation, or a one-off super Baby Bonus contribution, abolish the $450 monthly super threshold that forces causal female workers to miss out on super, and extend the Government co-contribution scheme for women.

The AIST is investigating the benefits of removing the 15 per cent contribution tax on super for low-income earners.

Meanwhile, the Fund Executive Association has awarded the chief executive of HESTA Industry Super Fund, Anne-Marie Corboy, with the Fund Executive of the Year award for her work in ensuring her members receive the full benefits of superannuation.

AMP Capital Investors’ business director of client, product and marketing, Brian Delaney, said: “Anne-Marie’s efforts calling attention to the needs of female superannuation have aided not only her own fund members but the industry as a whole, making her a well deserving recipient of this award.”