The Association of Superannuation Funds of Australia (ASFA) has called for the government to address systemic issues in super that are responsible for unequal retirement outcomes for women.
The industry body has pushed for a number of reforms, including the abolishment of the $450 monthly threshold for employers to pay super guarantee (SG) contributions, for mandated contributions to be made with paid parental leave and for compulsory super to be extended to self-employed individuals.
Analysis from Treasury has estimated that around 240,000 women and 160,000 men are affected by the $450 threshold.
Further, around 40 per cent of those affected are estimated to be aged under 25 and two-thirds under 35.
ASFA has expressed concerns that younger people missing employer contributions early in their life cycle will forgo substantial compounding of investment earnings.
ASFA chief executive Martin Fahy said what creates inequitable outcomes is often, women will have “broken working patterns, work part-time and tend to be lower paid”.
“It is not the rate of the superannuation guarantee that creates inequality in women’s super,” Dr Fahy said.
“Structural issues such as the $450 per month threshold for SG, not receiving super during paid parental leave, practical difficulties with family law and super splitting and no compulsory super for the self-employed, all serve to leave women worse off in retirement.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].