Too many holes in super system

The retirement savings gender gap has worsened and urgent policy action is needed to rectify this, according to two super bodies.

New figures by the Australian Bureau of Statistics (ABS) found the gap between male and female median super balances in the 55-64 age group was 47 per cent in the 2013/14 financial year, compared to a gap of 39 per cent in 2011/12.

These figures translate to a median balance for females in the 55-64 age group at $80,000 and $150,000 for men in 2013/14. This is compared to balances of $64,900 for women and $107,000 for men in 2011/12.

The Australian Institute of Superannuation Trustees (AIST) chief executive, Tom Garcia, said there was a persistent flaw in the super system that would not be fixed without a genuine commitment to major reform from all political parties.

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"It's very concerning that year after year Australian women are still retiring with nearly half the savings of their male counterparts and that the gap in median balances — which provides a more accurate picture of the retirement outlook for most women — appears to have widened," he said.

Women in Super (WIS) chair, Cate Wood, also said a range of policy measures were needed to improve the super savings gap.

"While there seems to be a growing consensus of the need to reform the super tax concessions, the savings made must be redirected towards improving the retirement outcome for women if we want to make the system more equitable," Wood said.

"There are too many holes in the current retirement savings system that women fall through."

Wood noted the upcoming Senate Inquiry into Women's Economic Security in Retirement and the Government's tax inquiry were timely opportunities to examine how redirecting generous tax benefits received by high income earners could benefit women.