Superannuation Gender Gap

 Superannuation gender gap putting Aussie woman behind men in retirement

Sobering news earlier this month, that women are more than twice as likely to spend retirement in poverty than men and the upcoming Federal Budget must address this, a superannuation industry expert claims.

A December 2015 report from the Association of Superannuation Funds of Australia (ASFA) showed the average superannuation balance for males was around $135,000 and $83,000 for females. Average balances around retirement age (60 to 64) were $292,500 for men and $138,150 for women.

ASFA CEO DR Martin Fahy said more than 80 per cent of women were retiring with insufficient superannuation savings and the issue needed a whole of government and societal response. “Security for women in retirement is an important issue,” Dr Fahy said. “Despite increasing workforce participation by women, there still remains a significant disparity between the retirement incomes of men and women.”

Five contributing factors Dr Fahy pointed out included: significant periods of part time or no employment while women cared for children and other family members; an overall gender pay gap; the increasing casualisation of the workforce; a longer life expectancy for women seeing funds stretched further; and the adequacy of superannuation overall — Dr Fahy called for the superannuation guarantee rate to be raised to 12 per cent as soon as possible.

Conversely - Property Club members / families are having a much better retirement; due to safely investing in residential property, best chosen for capital growth!

If we continue carefully and surely building a safe residential property portfolio, it will stand you in good stead for the future!

Have a great weekend and catch you next week!

Warm Regards,

Troy Gunasekera National Manager Property Club