Submission to the Senate Committee on economic security for women in retirement


This document is based on work done by members of the Social Policy Committee in submissions to those inquiries, and in the Gender Budget document that has been prepared in response to the Federal Budget with additional material from eS4W and its member organisation FECCA. Relevant NFAW submissions are attached as appendices to this paper.

Components of the Retirement Income System

The Australian retirement income system is based on three pillars: the age pension; compulsory superannuation through the superannuation guarantee; and voluntary savings including additional superannuation. Housing is commonly referred to as the fourth pillar of retirement security. In this submission we will address each of these issues from a gender perspective.

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 a gender 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 poverty1 .

The retirement incomes system should be reformed to reflect the reality of women’s lives, the impact on their retirement savings of their unpaid contributions to the national economy2 and to improve their economic security in retirement.



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