Women in Super, a national advocacy group, has called for immediate implementation of changes to make the superannuation system fair.
“Urgent changes are needed to boost the superannuation accounts of low income earners with an annual $1000 contribution to help address the growing number of retired women living in poverty,” said Women in Super (WIS).
“The current super system is not fair, efficient or sustainable and we have a plan to change it,” said the group, which has launched its Make Super Fair campaign.
WIS National Chair Cate Wood said the crisis in retirement outcomes for women warrant an urgent rethink of the superannuation system.
“When around 40% of older single retired women live in poverty, we need to stop and say enough is enough,” said Ms Wood.
“We must do better than a system that sees women retiring with 47% less than men. This is a crisis and unless we act now we will be leaving a tragic legacy for younger women. It is not fair or reasonable to simply tell women to fix the problem themselves. We need to get the basics right.”
WIS is calling for the “immediate implementation” of a number of policy measures aimed at improving the retirement outcomes of women and low income earners. One of these policies is an annual $1,000 super contribution for low income earners with super balances of upto $100,000.
Other policies include the removal of the $450 monthly income threshold for Super Guarantee contributions, Paid Parental Leave to include superannuation and “no further delay” in increasing the Super Guarantee rate to 12%. The SG rate is currently scheduled to reach 12% on 1 July 2025.
WIS is also calling for a requirement on the Government to “undertake and publish a gender impact statement for any changes to age pension or retirement income policy” with ongoing tracking of women’s retirement gap by the Workplace Gender Equality Agency.