Choose to challenge this International Women’s Day Mar 8, 2021
Today is International Women’s Day – a day to challenge inequality and call out gender bias.
Australia has come a long way in the fight for equality and this should be celebrated. But there is still much to do.
This International Women’s Day asks us to #choosetochallenge – challenge inequality, challenge gender bias, and create a more inclusive world.
At Intrust Super, we’re choosing to challenge the gender gap in super.
#ChoosetoChallenge the super gap
As of December 2020, women were still earning 14% less than men1. Only 17% of CEO positions were occupied by women, and women were three times more likely than men to be working part-time in 2019/201. For those with children under six, three in five working mothers worked part-time, compared to less than one in ten working fathers1.
If more women work part-time, take career breaks, and generally earn less, it follows that their super balances must also be lower than men’s.
COVID-19 has added yet another barrier. The hardest hit industries in this pandemic – retail, hospitality and tourism – also happen to be the industries with the highest proportion of female workers. In November 2020, when most industries were on the road to recovery, women were still experiencing far more job losses than men2.
In 2017/18, men were generally retiring with approximately $50,000 more than women3. That’s a difference of more than $3,100 each year in retirement income4. And when you consider that women’s life expectancy is actually higher than men’s, (which means their super needs to last longer) it’s pretty clear that, for the good of society, something needs to change.
Improving women’s pay, creating equal representation in leadership roles, and shared parental and family responsibilities are all big issues that we all need to work on before women’s super balances, and therefore their quality of life in retirement, can begin to equal men’s. But there are also some small steps everyone can take, to help boost their own balance or that of their partner’s.
This International Women’s Day, why not #choosetochallenge super inequality – and consider using some of these super boosting strategies to help close the super gender gap!
- By making personal contributions to super, low income earners (including those on parental leave) could become eligible to receive extra super money through the Low Income Superannuation Tax Offset and the Government Co-contribution.
- Spouse contributions and contribution splitting are two options that can help women grow their balance while they take time off work to care for family. The contributions could also make a tax offset available to your family.
- If you’re an Intrust Super member, you can use our app, SuperCents, to round-up spare change from everyday transactions and put it to work in your super. You can make additional contributions and track your balance without any hassle anytime, anywhere!
- Consider seeking financial advice. Intrust Super members can use our free online financial planning tool, Super Blueprint, or speak to one of our financial planners at Intrust360°.
This article is intended as general information only.
1Source: Australian Bureau of Statistics, Gender Indicators Australia, December 2020
3Souce: Australian Bureau of Statistics, Household Income and Wealth Australia, July 2019
4Source: ASIC’s MoneySmart Retirement Planner, based on a retirement age of 65 and the average Australian life expectancy of 83.
Intrust360° is our financial planning business (its legal name is IS Financial Planning Pty Ltd ABN 64 143 707 439). It’s a wholly owned subsidiary of IS Industry Fund Pty Ltd ABN: 45 010 814 623. It’s also a corporate authorised representative of Link Advice Pty Limited ABN: 36 105 811 836 | AFSL: 258145 | Corporate Authorised Representative Number: 379207.