Superannuation industry lobby groups are welcoming Labor's election promise to address the super gender gap at retirement. They also believe more can be done.
Women in Super has long advocated for several of Labor's proposed measures, including superannuation on paid parental leave and the removal of the $450 monthly earning threshold. The group's Make Super Fair campaign also wants to see female low-income earners with low super balances to be provided an additional $1000 annual contribution.
Women in Super chair Cate Wood said the group is pleased the Federal Opposition "has committed to consider the impact that any future changes to super would have on women."
The Financial Services Council (FSC) said Labor's plan should be commended because it helps all Australians on the path to a comfortable retirement.
|Sponsored by PIMCO|
Cyclical Outlook: Growing, But Slowing
FSC director of policy and global markets Allan Hansell said employers and superannuation funds should be encouraged by Labor's announcement "to go even further to innovate their superannuation offerings to help close the gender gap."
"The FSC has for many years paid super contributions for our own staff while on parental leave, as do some of our members. Another recent innovation has been for some super funds to introduce fee freezes for new parents. All employers and funds should think about what more they can do to boost retirement savings," Hansell said.
The FSC said the $450 threshold is little changed since the introduction of compulsory superannuation and doesn't reflect the changing nature of work for many.
An individual earning $450 a week would see about $11 a week added to their superannuation savings. Assuming an annual investment growth of 6.5%, this could provide additional retirement savings of up to $110,000 after 40 years of work, the FSC said.
Women in Super added that women currently retire with an average of 47% or $85,000 less super than men. Women are also more dependent on the Age Pension than men.