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ASFA calls on Government to close retirement savings gender gap

Media Release 7 March 2023

7 March 2023

ASFA calls on Government to close retirement savings gender gap

The Association of Superannuation Funds of Australia (ASFA) is calling on the Government to commit to closing the retirement savings gender gap using the tax revenue generated by the proposed $3 million cap on superannuation.

Australian women retire with on average 23% less superannuation than men. Australia must urgently address the retirement savings gender gap, which is unfairly impacting on the retirement outcomes of one half of the workforce.

ASFA Senior Policy Adviser, Helena Gibson, says now is the time to implement critical initiatives that will have meaningful impact on closing the retirement savings gender gap in super.

“As we celebrate International Women’s Day, ASFA is calling for long overdue action to protect the retirement outcomes of women who take time out of the work force, two simple measures – SG (Superannuation Guarantee) on paid parental leave, and a Super Baby Bonus of $5,000 would eliminate the gender retirement savings gap by 2050. (Refer to chart 1)

“There is strong support among Australians for policy action. Results of a recent ASFA survey show that more than 80 per cent of people agree that Government should try to boost the super balances of women who take time out of the workforce to have children.” (Refer to chart 2)

ASFA modelling finds that the cost of SG on paid parental leave would be approximately $200M and this measure needs to be prioritised in the upcoming Federal Budget.

Chart 1: Impact on superannuation balance at retirement (for different annual wage)

Chart

Source: ASFA calculations.

Chart 2: Should government boost the super of women who take time out of the workforce to have children?

Chart
Source: ASFA Consumer Survey (January 2022). Based on a survey of 1000 people.


For further information, please contact:
ASFA Media team, 0451 949 300.

About ASFA
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.

   

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