The Association of Financial Advisers (AFA)’s submission to the Senate Inquiry into the Economic Security for Women in Retirement says change is necessary and the Government will reap the benefits in terms of future spending and in terms of improving the financial security of both men and women in retirement.
In its submission, the AFA states, “These savings will be realised during retirement from a perspective that women would retire with more money in their superannuation fund.”
The AFA argues these savings will then place less pressure on the aged pension across the board. “As statistics prove, women live longer than men, so the reliance on the aged pension is more significant for females than males.”
The AFA submission makes seven recommendations to the Senate Inquiry. They include:
1. Convenient access to affordable, quality child care including out of school hours care
2. Consider introducing lifetime superannuation contribution caps for low income earners and those with broken careers due to caring responsibilities.
3. Removal of the monthly $450 threshold to Superannuation Guarantee(SG) contributions
4. Retention of the Low Income Super Contribution (LISC) scheme
5. Consider a SG contribution tax free period after parental leave to catch up lost contributions
6. Inclusion of SG on the government Paid Parental Leave scheme and other carer payments.
7. The Government implement a comprehensive education and specific superannuation focussed financial literacy program targeting women in specific segments of greatest need.
In its submission, the AFA also referenced the role its women’s network, the Inspire Community played in providing experiences and content for the submission.
The AFA’s Inspire Network provides opportunities for professional networking, coaching, mentoring, leadership and personal growth amongst women in financial services. Launched in 2013, AFA Inspire also helps bridge the gap between women seeking advice to secure their financial futures and advisers who can help them.
The AFA brings to life the issues raised in the submission in its Your Best Interests video campaign which was launched last year and takes three advice customers on the journey of improving the financial lives.