Should employees receive super contributions when on parental leave? This is one strategy up for discussion to solve the much broader issue of superannuation gender disparity that impacts women.

Not only do we have a gender gap in regard to pay, this gap is glaring when it comes to retirement savings. According to the Australian Human Rights Commission, half of women aged 45-59 have $8000 or less in their super funds, compared to an average of $31,000 for men of this age.

There are strategies all women (whether single, or as part of a couple) should consider, to ensure you don’t fall behind.Credit: Karl Hilzinger

They say more women are living impoverished during their final years, as they generally have a longer life expectancy than men. On average, all Australian women have about one quarter less in their super balance than their male counterparts.

This pre-Covid figure may actually be worse now, with advocate group Women In Super warning that they expect to see the gap widen given the early release on the super balances of almost 500,000 Australians during the pandemic.

There are many reasons for this gender disparity. More women are in part-time work than men. Women also tend to take time away from the workforce to have children.

On top of this, the gender pay gap means less super is paid to women, given super is a percentage of salary/wage. Currently, the employer contribution is 11 per cent and this will increase to 12 per cent by 2025.

The question I raised at the start comes from an Australian Greens proposal: the recent government announcement about applying higher tax on super balances over $3 million prompted the Greens to say they would only support this legislation if super contributions were paid when employees are on parental leave.

QOSHE - Eight ways for women to boost their super - Grace Bacon
menu_open
Columnists Actual . Favourites . Archive
We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Eight ways for women to boost their super

18 0
16.01.2024

Should employees receive super contributions when on parental leave? This is one strategy up for discussion to solve the much broader issue of superannuation gender disparity that impacts women.

Not only do we have a gender gap in regard to pay, this gap is glaring when it comes to retirement savings. According to the Australian Human Rights Commission, half of women aged 45-59 have $8000 or less in their super funds, compared to an average of........

© The Sydney Morning Herald


Get it on Google Play