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.
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
If female school or university students volunteer for work experience in finance, organisations have a “duty” to offer it to them, according to a senior funds management executive.
New research from Aware Super on the occasion of Equal Pay Day reveals Australia’s 13 per cent gender pay gap will equate to a $93,000 deficit in women’s super balances compared to men at retirement.
With only 25% of women currently using a financial adviser and many lacking financial confidence, they are losing thousands in superannuation.
The significant difference in women’s average superannuation account balances, compared to their male counterparts, continues to concern industry professionals.
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