Research showed a gender gap in super balances of 31% in the 2017/2018 financial year and this is likely to have increased during the pandemic. Sadly, WA has the widest super gap in Australia with women having almost 60% less in retirement savings in some areas. Research also shows that women outlive men, so in short, they have less in retirement savings then men, but are living longer!
As a nation, we are working toward closing the pay gap and Treasurer Josh Frydenberg included a package of around $3.4 billion of new measures to improve outcomes for women’s safety, economic security, health and well being in the 2021–22 Budget.
However, the Australian government and the superannuation industry does not recognise nor financially recompense women for the unpaid parental or carers work are they provide.
And with women having more time away from the workforce due to caring for their children or elderly parents - as well as earning less than men when they do work - they are struggling to increase their super balance. This setback is leaving women very vulnerable and at risk of poverty in retirement.
The increase in super guarantee from 9.5% to 12% will help women increase their balance, with the average worker earning $20,000 more over their lifetime as a result. However, this does not close the gender gap.
Abolishing the $450 superannuation guarantee threshold, and mandating super contributions for people on parental and carers leave will absolutely help and provide a much-needed boost on retirement savings.
Here at Sage, we encourage women to see us and talk to us about their financial concerns. There are many things we can do and in reviewing your finances, we can create a tailored plan to help close the super gap and boost your overall balance.
Give us a call on 08 9445 2955 or book an appointment for specific advice