Consider joint super accounts, govt told
National Seniors Australia has told the government it should consider introducing joint super accounts to improve the economic security of women in retirement.
In its submission to the Inquiry into Economic Security for Women in Retirement, National Seniors Australia recommended that the government investigate “innovative arrangements,” including joint superannuation accounts, to improve the retirement incomes of women.
“One potential benefit of having a joint superannuation account is that it could reduce the cost of having two separate administration fees. Another potential benefit would be that this creates economies of scale by consolidating both superannuation balances in one account,” the submission stated.
“Further analysis is needed to determine the cost implications for administering a joint superannuation account and the implications for competitiveness within the superannuation system.”
National Seniors also recommended the government look into the feasibility of providing women with superannuation contributions while receiving Parental Leave Pay (PLP).
“National Seniors believes that women’s retirement incomes should not be negatively impacted when taking time out of their careers to have children. Taking time out of the workforce to care for very young children is a necessary part of raising children which disproportionately impacts on women’s capacity to accrue superannuation balances,” the submission stated.
The government should also commit to “fairer” taxation of superannuation contributions for women on low incomes, National Seniors stated.
“National Seniors recognises that women make up the greatest proportion of low-income workers. Given low-income workers are less likely to save and accumulate adequate superannuation balances in retirement they, more than anyone, require tax incentives to assist them to save for retirement.”
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