In October 2015 the ASU began a major project investigating women, super and retirement in great detail. Initially it was to write a submission for a Senate Inquiry into women's financial security in retirement, but as we delved further it became apparent that this area is in great need to work.

In July 2017, we partnered with progressive think tank Per Capita to release a comprehensive report and recommendations based on the investigations we did. Read about it and download the report here: Per Capita report reveals retirement is not so super for women

Women and low paid workers, many despite a lifetime of work, are retiring with minimal super and facing an uncertain future.

On average, women are retiring with almost half the super of men^[1].

Why are women retiring with less?

• 67.9% of part-time workers are women
• Women working full-time earn 14% less than men
• Women take on average five years out of the workforce to care for children or family members – during which time they are not earning super
• An estimated 220,000 women miss out on $125 million of superannuation contributions as they do not meet the requirement to earn $450 per month (before tax) from one employer (as many women work more than one part-time job) ^[2]

Figure: Median superannuation balances - parents and non-parents by age bracket. (Per Capita, 2017)

We need to take action to stamp out the retirement gender pay gap in retirement savings. This can be done by:

• Eliminating the $450 minimum threshold to enable over 1 million Australians to start saving for their retirement, over half of those women;
• Paying a superannuation contribution at the prevailing SGC rate for the government’s paid parental leave scheme and on any carer or family payments.
• Keeping to the legislated increase to the superannuation contribution guarantee to 12%.

 Our universal superannuation system must work for all Australians to ensure everyone has a decent retirement and no woman retires in poverty.

^[1] ASFA Superannuation account balances by age and gender report, October 2017.

^[2] Who’s missing out on super? Wage threshold creates an underclass of biggest losers.

Since the super freeze in 2014, workers have lost an average of $4000 in super. Over that same period, that worker’s annual salary has also gone down by over $1000 when adjusted for inflation. So not only are Australians losing income now, they’re losing it in retirement as well.

If the super guarantee freeze continues at its current rate of 9.5%:

• This equates to an average loss of $1,630 per person
• A 30-year-old woman earning $85,000 a year, who takes time out of the workforce to have children, could lose up to $93,000 from her super nest egg by the time she retires
• A young family, by the time they reach retirement, could lose up to $240,000 in retirement savings.³

The superannuation guarantee must be increased to 12% on the promised and legislated timeline to ensure all Australians can rebuild their super accounts and retire with dignity.

Source: Australian Taxation Office, ‘Super guarantee percentage’ https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?anchor=Superguaranteepercentage#Superguaranteepercentage

Find out how much super you've already lost since the 2014 freeze: Calculator: https://percapita.org.au/our-work/lost-super-calculator/

Use this calculator to see what difference a 12% super rate will have on your retirement: Calculator (ISA): https://www.industrysuper.com/campaigns/yoursuperguarantee/

The Covid-19 pandemic has had a devastating effect on both income and superannuation. As of August 2020, 2.7million had utilised the early release scheme to access their super with as many as 600,000 Australians completely draining their super accounts in order to get by. It is predicted that $41.9 billion will be taken out of super by the end of 2020.

What does this mean for the future?

Lower superannuation balances means a higher reliance on the age pension at retirement. For the pension to be the main source of income for retired Australians, the pension rate will need to be increased by 50%, which will become quite costly. In fact, by 2058 it will cost tax payers $98.6 billion to help fund the pension.[1]

The only way Australians can begin to make up for lost super during this time, is by increasing the super guarantee to 12% as previously promised.

^[1] Freezing super guarantee will cost federal government billions in future

If you are planning for your financial future or retirement, we can recommend the ACTU's directory of endorsed financial advisors.

For a copy phone 1300 362 223 or visit the ACTU Member Connect super website

Member Connect has links to a range of superannuation and other financial services websites and advice.

ASU members are members of a wide range of superannuation funds, depending on where they work. Some of the most popular funds are:

• CARE Super: particularly for private sector clerical employees
• Australian Super: a general industry fund
• HESTA: health and community services
• legalsuper: legal industry workers
• Vision Super: Victorian local government employees
• Local Government Superannuation Scheme: NSW local government employees
• WA Local Government Superannuation Plan: Western Australian local government employees
• LG Super: Queensland local government employees
• Local Super: South Australian and Northern Territory local government employees
• Energy Superannuation: Energy industry employees
• Electricity Industry Superannuation Scheme: energy industry employees
• Tasplan Super: available for all ASU members in Tasmania, including local government employees
• Quadrant Super: Tasmanian local government employees

A number of these funds have links to super calculators and other key super resources available to their members.

We encourage you to use both SuperSeeker and AUSfund tools to look for any missing earnings you might have.

SuperSeeker is a tool provided by the Australian Taxation Office that will look for your lost super in real time and instantly provide you with possible matches. It is free to use and is available 24 hours a day, 7 days a week. To use SuperSeeker you will need to supply your tax file number.

AUSfund is another valuable tool for locating lost super.

• ACTU Superannuation website
• Per Capita - Not So Super, For Women report
• Industry SuperFunds - 12% Superannuation Calculator
• Per Capita - Lost Super Calculator