Abstract
It is well-evidenced that women earn less than men; however, the incessant effects of the gender pay disparity egregiously continue into retirement. Women in Australia retire with approximately half the superannuation balance of men; consequently, this chapter is preoccupied with understanding the reasons for the gender disparity in retirement (superannuation) savings in Australia. Using the framework of the sustainable development goals (SDG), notably SDG 10 (reducing inequalities), this chapter critically engages with how superannuation policy can be ameliorated and reformed to facilitate the diverse career trajectories and primary care responsibilities many women face. In line with SDG sub-target 10.2, the empowerment and promotion of economic inclusion, irrespective of age, sex, race etc., this chapter stresses the integral role that financial education and literacy play in enabling women to better understand the vital function of superannuation savings in preparing for a sustainable retirement. Finally, the latter section of this chapter explores how superannuation policy can be structurally amended to consider the oftentimes broken and disparate career trajectories women face.
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Notes
- 1.
For men in the same age bracket, 33% had a low balance of nil to $49,999; see Funds (2018, p. 9).
- 2.
Superannuation Guarantee (Administration) Bill 1992
- 3.
There are various distinct types of super funds, including industry schemes, corporate schemes and self-managed funds; see Brunner and Thorburn (2008, p. 15) for a typology.
- 4.
The current minimum preservation age (the age your super must be ‘preserved’ until) is between 55 and 60 depending on the year of birth; see Office (2015).
- 5.
In this study, Austen et al. (2013, p. 20) note that the increase in the gender wealth gap was primarily driven by the higher rate of increase in the median value of primary home assets held by single male households (SMHs) compared to single female households (FMH). The key conclusion from their study is that the differential growth rates in the value of the primary asset type drive the gender wealth gap.
- 6.
Baker (2011b, p. 12) research uses sample of 80, 725 women who stopped working to have a child and returned to work within 12Â months.
- 7.
Concessional contributions are contributions made into a super fund before tax. This includes employer contributions (compulsory contributions), additional employer concessional contributions, salary sacrifice payments and contributions that are allowed as an income tax deduction. Importantly, once the concessional contributions are in your super fund, they are taxed at a 15% rate. Concessional contributions are distinguishable from non-concessional contributions; see Office (2018a, b).
- 8.
The low income super tax offset contribution (LISTO) provides low-income earners with an adjusted taxable income of up to $37,000 with a contribution equal to 15% of their total concessional (pre-tax) super contributions. It is currently capped at $500; see Office (2017).
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Power, C. (2020). SDG 10 Reducing Inequalities. In: Franco, I., Chatterji, T., Derbyshire, E., Tracey, J. (eds) Actioning the Global Goals for Local Impact. Science for Sustainable Societies. Springer, Singapore. https://doi.org/10.1007/978-981-32-9927-6_11
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