Introduction
In Australia there are three pillars for retirement incomes – income support, superannuation and individual savings. This section addresses women and income support in the retirement incomes system.
NFAW believes the current system is sustainable from a fiscal perspective. Australia spends an average of 3.5% of GDP on age related spending compared to an OECD average of 7.8%. There is, however, a need to address the issue of an ageing population from an equity viewpoint. The challenge is to make the retirement income system fairer and more flexible by targeting public support more clearly at people who need it and by Improving incentives to save for the future. NFAW supports a systematic and comprehensive review of the Age pension(AP), superannuation and asset taxation.
There is a major gap between the financial security of Australian men and women in later life. Women face a much greater risk of poverty. Of all the household types in Australia, elderly single women are at the greatest risk of persistent poverty, with over half living in poverty. ( HILDA survey 2008)
The retirement incomes system should be reformed to reflect the reality of women's lives.