Changes to the super system are not enough to close the gender gap in retirement savings, the Australian Institute of Superannuation Trustees (AIST) believes.
While reforms such as extending the low income super contribution (LISC) scheme and removing the $450 monthly contribution limit are important, AIST said there were external issues to super than can have a much greater impact on either the gender gap or the fairness of the super system.
AIST said the major contributing factors to the retirement savings gap are pay inequity and constraints on female workplace participation.
AIST chief executive, Tom Garcia, said improving women's retirement outcomes is not just a matter of pulling levers inside the super system.
"If we are going to close the gap, we need a holistic approach, which includes a full examination of relevant policies outside of super," Garcia said.
"Legislating objectives for superannuation will hopefully put an end to ad hoc policy tinkering and provide a robust framework with which to assess any future policy proposals.
Garcia noted without fresh policies there should not be any expectation for any improvement.
"After 25 years of compulsory super this is a long-overdue measure that will be particularly valuable both in tackling the gender savings gap and assisting the current Tax Inquiry," he said.
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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