Many Tasmanians retire with a fraction of the superannuation recommended for comfortable retirement, and the gap is especially big for women.
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That is according to Industry Super Australia, which is urging Braddon Liberal MHR Gavin Pearce and Bass Liberal MHR Bridget Archer to fight for the staged boost of the superannuation guarantee from 9.5 per cent now to 12 per cent by 2025.
Some Coalition MPs want to cap the "compulsory super" paid by employers at the current level.
Industry Super Australia said a super balance of $545,000 was recommended for a comfortable retirement.
However, the median (mid-point) balances of people on the cusp of retirement were:
- $143,900 for women in Braddon;
- $172,900 for men in Braddon;
- $122,900 for women in Bass; and
- $168,500 for men in Bass.
It said women had almost a third less super than men in the North-West and almost 40 per cent less in the North.
"(North-West and Northern) Tasmanian women are retiring with not enough super and it's time the government did something about it," Industry Super Australia advocacy director Georgia Brumby said.
"It starts with the government and its local MPs re-committing to the already legislated increase to the super rate to 12 per cent."
'RE-COMMIT'
Ms Brumby said Mr Pearce and Ms Archer could fight for the promised super boost and to get super paid on every dollar earned, or turn their backs "as more local women are put at risk of retiring into poverty".
" ... women need certainty that the government are going to help boost their super, not tear it down.
"There is nothing more important for a woman's economic security than having enough savings at retirement."
ndustry Super Australia said women of all ages in the two electorates had less super than men, "but the gender gap starts to open once women hit their 30s, when many women take time out of the paid workforce to raise children".
"The gender gap widens to a gaping hole once women are in their early 50s ..."
It also called for:
- super to be paid on every dollar earned, including Commonwealth paid parental leave;
- abolishing a threshold which meant super did not have to be paid unless a person earned more than $450 a month, which it said greatly affected women, who were more likely to have multiple part-time jobs; and
- super splitting legislation, allowing more women to get their fair share when relationships ended.
It said a recent retirement survey it commissioned found that women on average spent 12 fewer years in the full-time workforce than men.
JOBS 'MOST IMPORTANT'
Mr Pearce did not directly answer a question about his attitude to increasing the compulsory super rate.
"The most important contributor to economic security is having a job and only yesterday the ABS labour force data showed that employment continued to increase in Tasmania and, importantly, more women are now employed than this time last year," he said.
"Wages are now 1.5 per cent higher than before the pandemic, which is the highest growth in the nation."
"Yes, there is more work to be done, but with businesses confidence up and job opportunities on the increase, coupled with the federal government's commitment to improving educational opportunities and job creating investment in our region, I'd say that it's an exciting time to live on the North-West, West Coast and King Island."
Ms Archer said: "I have been previously been on the record expressing my strong interest for closing the superannuation gap for women who often retire with a balance that is around 32 per cent less than a man, largely due to time taken out of the workforce to raise children."
"Ensuring women can stay connected to the workforce is the best guarantee to a secure, economic future.
"Progress has been made in this area, but I do recognise there is more work to be done and I will continue to advocate on this issue in Canberra."
'WOMEN WATCHING'
Tasmanian Labor Senator Anne Urquhart said it was time for Mr Pearce to "unequivocally confirm that he will commit to not cutting superannuation and no further delays to the timetable to increase the superannuation levy".
"This is a big deal, especially for women and low-paid workers here in the North-West."
"If Mr Pearce truly cares about dignity in retirement for North-West Coasters, he needs to go to the Treasurer and tell him to stop the delays.
"The average worker in their 20s today will be $85,000 to $100,000 worse off in retirement if super contributions are frozen again.
"They need to know whether they are getting this money or not.
"The women of the North-West are watching closely."
Senator Urquhart said the government had been caught out using the pandemic as an excuse to cut workers' super.
"They have form when it comes to taking political advantage of the pandemic and this is yet another example," she said.
"If you can't keep your promise on superannuation, how can Tasmanians believe you on anything else you promise going into the next election?
"Too many Tasmanians retire without adequate retirement savings, which is why our super system needs to be strengthened and protected, not undermined.
"The last time the Liberals froze the superannuation guarantee, wages growth didn't pick up.
"We got record low wages growth instead."
"The Liberal Party has form when it comes to undermining superannuation.
They have opposed every increase."
"Labor created our world-class superannuation system so everyday Australians can have dignity in retirement, and we'll always fight to protect it."