Millions of Australians are set to retire below the poverty line unless \u201cbold action\u201d is taken. <\/p>\n
A new report by Impact Economics and Policy for the Super Members Council finds that women are negatively impacted by life events, such as separation, unpaid care giving for older family members and family violence, that greatly affect super balances.<\/p>\n
These life events smash the retirement savings of Australian women who on average retire with $95,000 less than men in superannuation. <\/p>\n
Super Members Council chief executive Misha Schubert said the report was a wake-up call for all policymakers.<\/p>\n
\u201cAustralia has made important strides in recent years on the gaps in pay, super and workforce participation, but this research shines a spotlight on the need for further bold reforms to ensure our retirement system truly works for women \u2013 especially low-income women,\u201d Ms Schubert said.<\/p>\n
The report highlights that even a woman\u2019s financial outcomes upon retirement can be impacted by life events that occurred during her working life.<\/p>\n
These include finding a life partner, with single and separated women and widows most likely living in poverty. <\/p>\n
Single older women are more likely than single older men to experience persistent poverty, while older women who are divorced or separated from their partners most likely live in hardship. <\/p>\n
Another impact on women is playing the role of carer to older relatives, as they are almost 1.5 times more likely than men to be forced into early retirement due to having to look after an older relative. <\/p>\n
This unpaid care giving role has a flow-on impact to retirement. <\/p>\n
According to the SMC, there needs to be bold reforms to help close the gap between men and women in retirement. <\/p>\n
One of the changes the Albanese government has made is from July 1, 2025, parents accessing the government-funded paid parental level will receive an additional 12 per cent in superannuation payments.<\/p>\n
The SMC says it\u2019s a start but reforms need to go further.<\/p>\n
These include:<\/p>\n
\u2022 Unfreezing the low-income super tax offset (LISTO) to help women build their super balances<\/p>\n
\u2022 Close gendered loopholes including payday super reforms and pay super to all workers including nannies, householders and carers<\/p>\n
\u2022 Remove barriers for women to work, such as helping them access child and aged care. <\/p>\n
\u2022 Enabling a fairer split of super in a divorce<\/p>\n
\u2022 Boosting Commonwealth rent assistance<\/p>\n
\u2022 Making the super and age pension systems easier and simpler to navigate<\/p>\n
\u201cRecent reforms are an important start, but an even bigger and bolder approach is needed,\u201d Ms Schubert said. <\/p>\n
\u201cWithout urgent action, generations of Australia\u2019s lowest-paid women risk poverty in retirement.\u201d<\/p>\n