No chance of boosting super

CASH-STRAPPED low-income women say it’s “impossible” to tip extra money into their superannuation to bump up their balances.

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CASH-STRAPPED low-income women say it’s “impossible” to tip extra money into their superannuation to bump up their balances.

Professional care worker Jane Grundy, 61, who will today present evidence at a Senate inquiry into “women’s economic security in retirement”, said being able to tuck extra retirement savings away was inconceivable.

Struggling .... Professional care worker Jane Grundy will present evidence at a Senate inquiry. Picture: Bob Barke

“I’m just struggling to make ends meet, I’ve got a mortgage and earn $54,000 a year, there’s not a single cent left after I pay all my expenses,’’ the permanent part-time worker said.

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“I have about $100,000 in super and I want to retire in about four years.

“It’s impossible to catch up unless I won Lotto, I can’t work any more hours than I am, I’m working as many hours as I can and I never knock back work.”

The golden egg ... Many women who retire with insufficient superannuation savings will be forced to rely on the aged pension.

Lower-paid jobs and extended time out of the workforce are some of the core reasons women remain well behind men with their superannuation savings.

Bank teller Louise Arnfield, 56, is on a low income — she has just $50,000 in super and a home loan she’s yet to pay off.

She said being able to make extra contributions to her nest egg was “ludicrous.”

“I live payday to payday and have done all my life,’’ the recently-widowed mother said.

Australian Bureau of Statistics shows the gap between median super balances for Australians in the 55-64 age group has spread to more than $70,000 in 2013/14.

Median balances for men are $150,000 compared to almost half this for females at just $80,000.

Chair of the inquiry Senator Jenny McAllister said suggestions to increase lifetime contribution caps would not bridge the gap between men and women’s super savings.

“The main problem isn’t that the law stops women from putting more money into their super — the problem is that most women don’t have the money in the first place,’’ she said.

Fighting for women’s rights ... Labor Senator Jenny McAllister says many women cannot afford to tip extra money into their superannuation

The Australian Institute of Superannuation Trustees’ chief executive officer Tom Garcia said a growing number of women “simply do not earn enough to be able to put extra into their super.”

“We need a package of policy changes to improve the retirement outcomes,’’ he said.

“We need to narrow the gender pay gap, improve female work participation in addition to addressing holes in the super system.

“Not all retirement products are appropriate for small balances and some charge very high fees.”

About 80 per cent of industry super fund Hesta’s members are women and average member balance is just $53,000.

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Originally published as No chance of boosting super