Superannuation can help address the gender gap in retirement but is not a panacea, according to Rice Warner.
In an analysis, the research house said super could reinforce efforts to increase female wages relative to males, and to set aside enough for retirement.
- It also said female contributions to super could be increased by:
- Paying the superannuation guarantee (SG) on paid parental leave – preferably for more than the statutory 18 weeks. Employers and government could share this cost; and
Looking at targeting females. For example, we could pay additional SG contributions for younger females, say 2%, up to age 30. Backed by strong education, this will empower females to think of their retirement at an earlier age. They should be shown how extra contributions will close the retirement gender gap.
Rice Warner said those who fell behind could be supported in retirement through social housing and/or increased rental assistance.
Attribution of the gender gap in superannuation balances at retirement (50th income percentile)
Source: Rice Warner