The SMSF Association welcomes the Senate’s decision to ask the Economics Reference Committee to examine the disparity between male and female superannuation savings. The inquiry is expected to report by March next year.
Association CEO/Managing Director Andrea Slattery says such an inquiry is essential to explore the complex and important issues involved in the difference in superannuation balances between the sexes.
“The differences in superannuation balances has long been an issue of contention for the Association that, if resolved, would help contribute strongly to long-term capital and national prosperity.
“We have repeatedly asked policy-makers to consider how to address the issues underpinning this inequality, such as women experiencing broken work patterns because of time taken out of the workforce to have children, and will eagerly participate in this process in anticipation of some viable solutions being found.
“The Association is on the public record as saying that measures such as retaining the LISC (low income super contribution) and increasing the SG (Superannuation Guarantee) rate to 12% would help reduce this gap over the longer-term and hopefully these suggestions will be considered by the inquiry.”
Slattery says the inquiry comes at an opportune time with recent research by the SMSFA and nabtrade showing that female SMSF trustees are looking to be more engaged in their superannuation.
“The 2015 Intimate with Self-Managed Superannuation report shows that females are seeking broader education on investments compared with males. This is particularly pertinent when you consider that females take longer to commit to a strategy, but in doing so will often make good, long-term choices.
“What this suggests to me is that women are becoming more aware that investment strategies are an important component of running an SMSF, and that they need to understand issues such as the importance of diversity, asset allocation and rebalancing their portfolios in line with changes in the characteristics of the fund.
“It is an encouraging trend that women are becoming more involved in their superannuation, and as this happens then it is inevitable valid questions will be asked about the disparity in superannuation balances between the sexes.
“Hopefully this inquiry will not only be able to identify the causes of this disparity but recommend solutions that will find bipartisan support in the Parliament.”
About the SMSF Association:
The SMSF Association exists to improve the quality of advisors, the knowledge of trustees and the credibility and health of a vibrant SMSF community.
Contact for interviews:
SMSF Association CEO/Managing Director
M: 0417 898 317
M: 0409 585 979