Cutting super will send retirement savings of Tasmanian women into freefall | #retirement | #elderly | #seniors
Tasmanian women of all ages also have some of the lowest super balances in the nation – and if the government cuts super women will be left further behind.
The gender super gap at retirement in Tasmania is more than 30% and the median balance of Tasmanian women in their 60s is just $142,000 –well below the $545,000 recommended for a comfortable retirement.
These stark figures highlight the need for the government to keep its promise to lift the super rate to 12%. Women on middle to low-income are the most likely to get the legislated super boost, lifting the rate will contribute to ending the retirement imbalance.
The median super balance for women in their early 50s in the electorate of Lyons is just $73,600 – among the lowest in the country (See each Tasmanian electorate in Table 2 below). The typical Tasmanian women of all ages lag both the state’s men and the national female figures.
Cutting super would leave Tasmanian women further behind and dramatically harm their future economic security. A 30-year-old woman on the median wage could lose up to $85,000 if the super rate is cut.
The government has been dragging its feet on important reforms which will improve Tasmanian women’s economic security including:
· Paying super on every dollar earned, including on Commonwealth parental leave;
· Abolishing the $450 threshold where super is not paid unless you earn more than that a month, this greatly impacts women as they are more likely to have multiple part-time jobs;
· Failing to enact super splitting legislation, this streamlines the splitting of super assets and allows more women to get their fair share when a relationship ends.
A recent retirement survey, commissioned by ISA, found that on average women spend 12 years less in the full-time workforce than men, this time away from work is having a dramatic impact on their super balance.
One in three women retire with no super balance at all, according to a 2016 Senate report.
Despite the importance of lifting super to improve women’s retirement outcomes the government has said it is considering cutting super at 9.5%, even as government MPs pocket more than 15% super.
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