The Retirement Income Review needs to focus on women as the gender gap imbalance is for long-standing and well-documented reasons, according to KPMG.
In a submission to the review, the firm said the main issues caused by the gender gap was less continuity in women’s careers and fewer hours worked, often less pay for equal work, and not getting the promotions that men are more likely to obtain.
KPMG head of asset and wealth management, Linda Elkins, said: “If we could draw up the retirement system with a blank sheet of paper, no doubt we would include provisions that redress the unequal contribution that women make to society through caring for other generations.
“But sadly the current system does the opposite – while it was not designed to discriminate against women, in effect all it does is exacerbate the inequality. Specifically, through superannuation concessions, it amplifies the imbalance in earnings between men and women.”
As a start, she said, changes affecting the three pillars of the country’s retirement income system needed to be addressed – reducing the impact of the Age Pension (pillar one) by implementing amendments to increase/incentivise an increase in contributions (pillar two), and the voluntary superannuation (pillar three).
To start the process of getting more equality of outcome into the system we suggest changes affecting the three pillars of Australia’s retirement income system – they are targeted at reducing the impact on the Age pension (Pillar 1) by implementing amendments to increase/incentivise an increase to contributions (Super Guarantee Pillar 2) and the voluntary superannuation (Pillar 3).
In its submission, KPMG proposed:
“Our economists estimated that a halving of the gap between male and female participation would see the country’s GDP would benefit by $60 billion over 20 years, while cumulative living standards would be raised by up to $140 billion,” she said.
“That must be the real goal of Australia as a country. But from a retirement perspective, we believe the proposals outlined here would do much to combat the inequality women face in later life.”The Retirement Income Review needs to focus on women as the gender gap imbalance is for long-standing and well-documented reasons, according to KPMG.
In a submission to the review, the firm said the main issues caused by the gender gap was less continuity in women’s careers and fewer hours worked, often less pay for equal work, and not getting the promotions that men are more likely to obtain.
KPMG head of asset and wealth management, Linda Elkins, said: “If we could draw up the retirement system with a blank sheet of paper, no doubt we would include provisions that redress the unequal contribution that women make to society through caring for other generations.
“But sadly the current system does the opposite – while it was not designed to discriminate against women, in effect all it does is exacerbate the inequality. Specifically, through superannuation concessions, it amplifies the imbalance in earnings between men and women.”
As a start, she said, changes affecting the three pillars of the country’s retirement income system needed to be addressed – reducing the impact of the Age Pension (pillar one) by implementing amendments to increase/incentivise an increase in contributions (pillar two), and the voluntary superannuation (pillar three).
To start the process of getting more equality of outcome into the system we suggest changes affecting the three pillars of Australia’s retirement income system – they are targeted at reducing the impact on the Age pension (Pillar 1) by implementing amendments to increase/incentivise an increase to contributions (Super Guarantee Pillar 2) and the voluntary superannuation (Pillar 3).
In its submission, KPMG proposed:
“Our economists estimated that a halving of the gap between male and female participation would see the country’s GDP would benefit by $60 billion over 20 years, while cumulative living standards would be raised by up to $140 billion,” she said.
“That must be the real goal of Australia as a country. But from a retirement perspective, we believe the proposals outlined here would do much to combat the inequality women face in later life.”
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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