Policy needed to help women’s retirement income
Putting a gender lens on policy development and tax will help drive changes to stop women retiring in poverty, according to a panel.
The panel speaking at Money Management and Super Review's Women's Wealth Breakfast this morning, agreed tax reform was key to moving the issue forward.
The Australian Institute of Superannuation Trustees (AIST) senior policy adviser, Karen Volpato, said the two worst features hindering women's retirement income were the gender pay gap and the fairness of the super system.
"Putting a gender lens on policy development along with measuring progress through data on this can drive change," she said.
"The biggest issue is tax because women and men pay the same when putting money in the system, and while it's in the system. The reality is that women don't save enough to overtake the tax-free threshold after age 60."
Agreeing, Workplace Gender Equality Agency acting director, Louise McSorley, said the gender pay gap needed to be addressed as it is "caused by a complex range of cultural and structural areas".
"If you're asking me to save a little bit more to put in super because I'm earning less than a man so that I'll have a reasonable retirement that's a bit unfair," McSorley said.
"Why do women have to fix the problems themselves? So fixing tax system so that we have a gender lens on it that recognises that differential impact and women's different circumstances is absolutely critical."
Association of Financial Advisers national president, Deborah Kent, said she could not understand why there was still a difference in pay.
"By closing the gap on equal pay it obviously means females then will have more money to save for retirement," Kent said.
"It's very sad to think there are so many women that retire in poverty. It just shouldn't happen and I do see them quite a lot."
Recommended for you
With Fortnum Private Wealth and Professional Financial Services now unified under the Entireti umbrella company, CEO Neil Younger has detailed to Money Management the firm’s new direction and future expansion.
The FAAA has suggested looking offshore for overseas financial advisers to ease the adviser shortage, but are employers willing to take on the burden of workplace visas?
There may be a huge influx of alternatives coming to the market, but timing and access difficulties mean advisers can easily end up disappointed with their selection, according to Morningstar global CIO Dan Kemp.
An NSW individual has pleaded guilty to one criminal charge of providing unlicensed financial services after promoting crypto investments at national seminars.
