The ACTU wants a superannuation guarantee of 15 per cent fast-tracked for women

superannuation

Superannuation Source: Getty Image

The ACTU is campaigning for a 15 per cent superannuation contribution for women who are often paid less and end up worse off in retirement. On average, women retire with about half the savings balance of men and migrant women are particularly at risk if they are not financially literate.


When planning for retirement, the savings gained from years of work is crucial to securing a comfortable future but the superannuation sector can be tricky to navigate.

 

The Australian Council of Trade Unions wants a superannuation guarantee of 15 per cent fast-tracked for women so they can achieve independence in retirement.

 

The ACTU's Assistant Secretary Scott Connolly says women earn less than men, therefore, accumulate a low level of superannuation because of their wages.
ACTU president Michele O'Neil
ACTU President Michele O'Neil (centre) urges Indonesian President Joko Widodo to repeal Omnibus Law on Job Creation. (AAP) Source: AAP
The ACTU says the government has legislated for a nine and a half per cent rate until mid next year but that will slowly increase to 12 per cent over time.

 

The union also made a submission calling out superannuation inequality for women as part of the Retirement Income review with a report due out by mid this year.

 

27 years after compulsory superannuation was established, the federal government agreed to the independent review to examine pension age, voluntary savings and how the retirement income system will function as the population ages.

 

Mr Connolly says the superannuation system has structural flaws and he wants politics put aside to enhance future living standards for women.

The coronavirus economic downturn was having a greater impact on women's employment and salaries, according to advocates.
The coronavirus economic downturn has had a greater impact on women's employment and salaries. Source: Getty
It's also been one year since the Banking Royal Commission report was released, which covered superannuation.

 

The report states superannuation is not a product to be sold and too many employees have multiple accounts.

 

It's a common occurrence when workers start in new jobs and don't actively tell employers about their existing superannuation account, therefore a new one is created.

 

The Federation of Ethnic Communities Councils of Australia Mary Patetsos says often superannuation isn't explained well and there is a need for improved education.


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The ACTU wants a superannuation guarantee of 15 per cent fast-tracked for women | SBS Nepali