The typical woman is retiring with almost $60,000 less super than men – as the federal government drags its feet on fixing the gender super gap and still has not re-committed to sticking with the legislated super increase.
The median super balance for a woman in her early 60s is just $146,900, lagging the male median of $204,200 (See table 1). Both men and women have less than the $545,000 recommended for a comfortable retirement.
These stark figures highlight the need for the government to keep its promise to lift the super rate to 12%. Women on middle to low-income are the most likely to get the legislated super boost and lifting the rate will contribute to closing the gender super gap.
Cutting super would leave women falling further behind and dramatically harm their future economic security. A 30-year-old woman on the median wage could lose up to $85,000 if the super rate is cut.
In all states and territories women's super-balances are falling dramatically behind men.
The gender rift is widest in Western Australia where the typical woman has 38% less super than men. Northern Territory women have the lowest amount of super with a median balance of just $40,900 followed by Western Australia $45,200 (See table 2). Women in the ACT, which has a higher percentage of public sector working earning 15% super, have a comparatively healthy $72,400 median super balance.
As the gender imbalance worsens the government has been dragging its feet on important reforms which will improve women's economic security including:
· Paying super on every dollar earned, including on Commonwealth paid parental leave;
· Abolishing the $450 threshold where super is not paid if you earn less than that amount of money a month, about 63% of those impacted are women;
· Failing to enact super splitting legislation, this policy streamlines the splitting of super assets and allows more women to get their fair share when a relationship ends.
A recent retirement survey, commissioned by ISA, found that on average women spend 12 years less in the full-time workforce than men, this time away from work is having a dramatic impact on their super balance.
One in three women retire with no super balance at all, according to a 2016 Senate report.
Despite the importance of lifting super to improve women's retirement outcomes the government has said it is considering cutting super at 9.5%, even as government MPs pocket more than 15% super.
