Retirement income issues

Thanks

NFAW's submission  on retirement incomes to the Henry review included the comments we received from many women.  Thanks to all those who contributed.

Issues

In retirement, income can be derived through voluntary savings, compulsory savings enforced through the Superannuation Guarantee and/or the Age Pension, which provides income based on means testing.

59% of income support recipients are women, and 58% of these women are single.  Women are the most disadvantaged people in this group, as they have saved less during their working years due to a combination of:

 

•  Time spent in unpaid work when caring for children;
• Receiving lower salaries than men when they do work; and
• As a result, receiving less benefit from superannuation. 

Retirement income can be determined and provided in different ways.  For example, it can be determined to be a proportion of income earned prior to leaving employment or it can be set at a minimum level.  However, it is set, it needs to be adequate enough to provide a decent standard of living.

In time, the Superannuation Guarantee will form a greater part of everyone's retirement income. 

The following papers provide details about the issues.  Other resources are also available. 

Women and Retirement Incomes, by Professor Patricia Apps of the University of Sydney, 21 January 2009  

Policy developments on pensions and retirement incomes:  by Marie Coleman.  Gives details of the Review of Australia's Future Tax System and the Review of Commonwealth Pensions.  Includes the timetable and next steps for NFAW. 

Women's retirement income:  This paper by Marie Coleman outlines some of the issues that impact on women's retirement incomes.

Women and retirement savings:  This is a paper outlining the issues and providing a summary of key research into superannuation