Statement from ASFA CEO, Mary Delahunty: Women asked, yet again, to sacrifice retirement savings under latest proposal
Suggestions by elected officials in the media today that single and divorced women – who are already most at risk of persistent poverty in retirement – should be able to drain superannuation early to purchase property would not solve one of the biggest challenges facing Australian women, and risks entrenching poverty for this group.
Why do we expect women, especially marginalised women to go without income in retirement? What level of poverty is acceptable to our elected representatives? Or should we be aiming higher?
MPs of all political parties need to focus on fixing the housing supply crisis, rather than proposing options which risk driving up prices through increased demand, without offering solutions to build more homes.
Research from ASFA, the voice of super, has consistently shown women have worse retirement outcomes than men and this latest proposal would only heighten that.
Women already retire, on average, with around 25 per cent less super than men, with time taken out to care for children and other family members significantly contributing to lower balances. Many are also leaving the workforce early due to menopause. Creating new policy settings to worsen that outcome is dangerous.
Single women of any age deserve the same right to a home and dignity in retirement as anyone else. This proposal asks them to choose between those two outcomes, rather than asking politicians to get on and do the hard work of increasing housing supply.
Any efforts to further erode women’s balances – when they are already behind men – put women at risk of further, severe financial harm.
We call on the MPs behind this policy push to rethink the ramifications, engage with the sector and the women who would be negatively impacted. We believe a more constructive conversation would be to focus on addressing the retirement savings gap.
For further information, please contact ASFA Media team: 0451 949 300
About ASFA
ASFA, the voice of super, 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.