Retirement
Structural reforms required as women retire in poverty
Older women are continuing to suffer from financial hardship, as key structural issues continue to see women go backwards in terms of wealth compared with men, an industry expert has revealed.
Structural reforms required as women retire in poverty
Older women are continuing to suffer from financial hardship, as key structural issues continue to see women go backwards in terms of wealth compared with men, an industry expert has revealed.
Following Equal Pay Day, Aware Super CEO Deanne Stewart has pointed to key reforms that are needed in order for women to have the same opportunities as men.
Noting the pay gap, which has an impact on women’s ability to spend, save and invest, Ms Stewart warned of the flow-on impacts it is having on retirement outcomes.
“We know there have been disturbing increases in the rates of poverty and homelessness among older women,” Ms Stewart said.
“Recent data shows more than 400,000 women over the age of 45 are at risk of homelessness.”
With the size of the issue only increasing, Ms Stewart flagged a number of key regulatory changes that were needed in order for women to get ahead.
“There’s much that can be done to improve financial security for women. More accessible and affordable childcare would make a huge difference given time out of the workforce is one of the factors contributing to the super gender gap,” she continued.
“Normalising the sharing of caring responsibilities is also critical as well as paying superannuation on family leave.”
Equal Pay Day 2021 recognises that it has taken until 31 August to close the national gender pay gap — or in other words, it takes 61 days for a woman to earn the same as a man.
Workplace Gender Equality Agency (WGEA) director Mary Wooldridge said that at the current pay gap, on average, for every six years men work, women will need to work seven to be on par with their earnings.
“Equal Pay Day is a symbolic recognition that women’s potential is not being fully realised or valued and an important reminder that women continue to face significant barriers in the workplace,” Ms Wooldridge said.
“While nearly two months’ difference is too long, the real gender pay gap is even greater. This traditional calculation is based on the ABS’ ordinary full-time average weekly earnings.
“If we include average weekly earnings data on earnings for all hours worked, including overtime and part-time work, the pay gap more than doubles to 31.3 per cent.”
Ms Stewart was also quick to point out that the days are moving in the wrong direction.
“Last year, women would have had to work an extra 59 days, and two years ago it was 58 days,” she said.
“It’s deeply concerning that despite the heavy focus on this issue in recent years, the gap is getting wider.
“We can no longer afford to just tinker around the edges. Real, lasting structural change is the only way we will address gender inequity now and for generations to come.”
RELATED ARTICLES
About the author
About the author
Retirement Planning
The retirement mortgage squeeze: how one bank turned a demographic risk into a strategic edge
An increasing share of Australians are entering their 60s still paying off mortgages, just as living costs and interest charges stay stubbornly high. For banks, super funds, retailers and ...Read more
Retirement Planning
The retirement mortgage crunch: what it means for banks, retailers and policy in Australia
A growing share of Australians are carrying mortgages into their 60s and beyond, colliding with persistent cost-of-living pressures and a “slow grind” macro outlook. This isn’t just a social story; it ...Read more
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
Retirement Planning
Simplified retirement advice: Key to overcoming behavioural biases, experts say
In a bid to enhance retirement outcomes for Australians, a recent whitepaper by Industry Fund Services, in collaboration with Challenger, has highlighted the importance of simplifying retirement ...Read more
Retirement Planning
Rest launches Retire Ready digital experience to empower members approaching retirement
Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled a new digital experience aimed at making retirement preparation simpler and more personalised for its members. Read more
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
Retirement Planning
The downsizer dividend: how Australia’s ageing shift will reshape property, finance and AI strategy
Downsizing is moving from a personal milestone to a system-level lever for Australia’s housing market. As policymakers court reforms and agents eye fresh listings, the real profit pools will accrue to ...Read more
Retirement Planning
The retirement mortgage squeeze: how one bank turned a demographic risk into a strategic edge
An increasing share of Australians are entering their 60s still paying off mortgages, just as living costs and interest charges stay stubbornly high. For banks, super funds, retailers and ...Read more
Retirement Planning
The retirement mortgage crunch: what it means for banks, retailers and policy in Australia
A growing share of Australians are carrying mortgages into their 60s and beyond, colliding with persistent cost-of-living pressures and a “slow grind” macro outlook. This isn’t just a social story; it ...Read more
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
Retirement Planning
Simplified retirement advice: Key to overcoming behavioural biases, experts say
In a bid to enhance retirement outcomes for Australians, a recent whitepaper by Industry Fund Services, in collaboration with Challenger, has highlighted the importance of simplifying retirement ...Read more
Retirement Planning
Rest launches Retire Ready digital experience to empower members approaching retirement
Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled a new digital experience aimed at making retirement preparation simpler and more personalised for its members. Read more
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
Retirement Planning
The downsizer dividend: how Australia’s ageing shift will reshape property, finance and AI strategy
Downsizing is moving from a personal milestone to a system-level lever for Australia’s housing market. As policymakers court reforms and agents eye fresh listings, the real profit pools will accrue to ...Read more
