The Australian Institute of Superannuation Trustees has called for the Superannuation Guarantee to be raised to 12 per cent rather than being held at 9.5 per cent in order to prevent an ‘unacceptable’ chasm in retirement outcomes between men and women.
The gender gap in superannuation meant women currently aged between 35-60 would retire with 30 per cent less super than men. This was caused by several factors including women being paid less and taking time out of work to raise families.
The problem was worsened by the fact low earners were penalised by the existing superannuation tax settings.
AIST head of advocacy, Ailsa Goodwin, said an increase to 12 per cent would be the ‘single greatest contribution to improving women’s retirement balances’.
“Leaving super at 9.5 per cent will consign women to financial hardship in retirement. Women live longer than men and are increasingly approaching retirement without the safety net of home ownership relied upon by previous generations.”
The Superannuation Guarantee is scheduled to rise to 12 per cent by 1 July, 2025.