The contribution of mature-aged women to total hours worked in the economy has more than doubled over the past 30 years, which will help to narrow the gap between men's super balances and women's in coming years to around 50 per cent, according to financial experts.
The contribution of mature-aged women to total hours worked in the economy has increased from 6 to 15 per cent over the past three decades, according to a recent report from the Productivity Commission. This trend is expected to continue.
"Younger women today have both higher levels of education and labour force participation than mature aged women had when they were younger. It is likely, therefore, that participation rates for mature-aged women will continue to rise as these younger women enter older age groups," the Productivity Commission said.
The report forecasts this will help raise women's superannuation balances and narrow the gap with men's balances to 50 per cent from 60 per cent.
"It is estimated that by 2040 average superannuation balances for women aged 55 to 64 years will be $200,000, although significant growth in the average balances for both women and men implies that women's balances are projected to rise from 50 per cent to 60 per cent of balances for men at the same age," the report forecasts.
In 2010, women aged 55 to 64 years were estimated to have an average super balance of around $54,500, well behind the average male balances of $113,200, according to data from the University of Canberra's NATSEM unit.
The Association of Superannuation Funds of Australia chief executive Pauline Vamos said mature-aged women are working more hours today than in previous years as they seek greater financial security.
"Women know they are going to have to look after themselves in retirement and they need to put extra money into their superannuation."
"You've got women who are working in aged care, in hospitality, as nurses and often their pay rates are very low. So the only way they can build up their balances is to work more shifts or to work several jobs to get a decent income," Vamos said.
Plans by the Federal Government to maintain the $50,000 limit on concessional superannuation contributions from 1 July 2012 for individuals aged 50 and over with superannuation balances below $500,000 would benefit women particularly, she said. This doubles the cap of $25,000 that is scheduled to apply from that date.
"This is the first female friendly policy we've seen for a long time," Vamos said.
Centric Wealth technical research analyst Natasha Panagis said women who had 10 or more years until retirement should invest part of their savings in balanced or growth options so their savings "could last over their life expectancy."
In addition to salary sacrificing into their super, women should take advantage of the Federal Government's co-contribution of up to $1000 for low income earners, she said.
"One of the most important things is to roll over your super into one fund to avoid paying multiple set of fees," she added.
Plans to boost the superannuation guarantee (SG) to 12 per cent by July 2019, as well as the raising of the SG age limit to 75 from 70 years from 1 July 2013, would also benefit women, she said.
From 1 July 2012, the government also proposes to introduce a tax rebate of up to $500 a year for concessional contributions made by individuals with taxable incomes of less than $37,000, something which women should take advantage of, she said.
