The problem Across the whole ASU membership ASU members have been talking a lot about their fears they won’t be able to afford to retire with dignity. Australia’s superannuation system is failing women. Women work less often and for lower pay. We make and keep homes, raise kids and care for our whole families but we are not paid for the contributions that women typically make to support the people we love the most. As a lot of our work is unpaid or underpaid, superannuation balances fall further and further behind so that women are retiring with around half as much superannuation as men. Average super balance by parental status. The average super balance of mothers is less than the average super of other workers. The average super balance of fathers, on the other hand, is more than the average super of other workers. The problem is severe and distressing for ASU members. Every day we ignore it, the impact will get worse. We can’t wait to the end of our working lives to make something happen. We need to stamp out the gender pay gap in retirement savings and Get Super Working For Women! “…I can’t afford to contribute to my own superannuation, can’t afford to take holidays, nor can I take extra paid leave as I live pay to pay. There are many like me who, after a mid life divorce, accepted extra in the equity of their home so that the children were not disturbed rather than a share of his super. My husband had a for life government pension which, after 20 years of support, I could not make a claim on. I maintained the home and fulltime care of our child while he went off shore and earned big tax free dollars. He now lives on a luxury yacht and travels regularly while I live from pay to pay. Thanks for listening!…” ASU member, Per Capita report
Figure 3. Ratio of non-managerial female to male pay in Australia: pay rate and total earnings (2014). What’s more, superannuation is predicated on the fact that every worker is an employee. But the rise of non-standard work means that almost a quarter of female workers (23%) aren’t in a traditional permanent employment arrangement (ABS Series 6306). Instead, they are casuals, contractors, subcontractors, labour-hire workers, self-employed or on zero hours contracts. In all of these arrangements, superannuation is less likely to be paid. Women are overrepresented in the industries where these forms of precarious work are most common, with the result that the growth of these forms of work hits women’s retirement incomes hardest. Analysing the ASU survey data We now turn to the analysis of the 3,021 respondents from the second survey,in October 2016. We first examine respondents’ estimated superannuation balances by gender and age bracket. In Figure 4, we see that women dominate the lower superannuation balance brackets, while men almost exclusively occupy the upper ones. Percent Women Men *Note: N = 3,009 Source: ASU Superannuation Survey 2016 Figure 4.“What do you estimate your current superannuation balance to be?”
Appendix:The surveys Survey 1: Conducted August 2015 Improving women’s economic security in retirement Q1 Which state or territory do you work in? Q2 What is your age bracket? Under 25 years - 25-34 - 35-44 - 45-54 - 55-64 65 and over Q3 What is your employment status? Full-time Part-time Casual Self-employed Unpaid household work Unemployed Retired Other (please specify) Q4 Are you a current member of the ASU? If so, please select your Branch. No, I am not a current ASU member No, but I am a former ASU member Yes, I am a current ASU member but I’m not sure which Branch NSW United Services Branch NSW & ACT (Services) Branch QLD (Services & Northern Admin) Branch QLD Together Branch SA & NT Branch Taxation Officers’ Branch VIC & TAS Authorities & Services Branch VIC Private Sector Branch WA Branch Q5 Are you a current member of another union? No, I am not a current member of another union, No, I have never been a union member, Yes, please specify which union Q6 What is your gender? Female Male Other Q7 Do you identify as Aboriginal or Torres Strait Islander? Yes No Q8 Do you identify as LGBTIQ (lesbian, gay, bisexual, transgender, intersex or queer)? Yes No Q9 Is English the main language spoken at home? Yes No Q10 Do you have a serious illness or disability that affects your ability to work? Yes No Q11 Do you have primary carer responsibilities? Please select all that apply. No Preschool and/or School aged children Disabled or seriously ill school aged children Disabled, seriously ill or elderly adults, eg. frail parents, disabled adult children Other (please specify) Q12 How many years have you been in paid employment? Less than 5 years Between 5 and 9 years Between 10 and 19 years Between 20 and 29 years Between 30 and 49 years 50 years or more; Not applicable