The Grattan Institute has released its latest policy paper on superannuation, finding that retirees are losing a significant portion of their savings on fees.
It found that a current 50 year old will lose about $80,000 in fees, while a 30 year old will lose a massive $250,000.
Fees on our superannuation are exorbitant. And for some women losing such a large total sum is particularly significant.
I was driven to engaging in gender equality because I’ve seen women who after a lifetime of work realise that they are not financially prepared to retire. Anyone who has ever discussed women’s retirement wishes that the circumstances were better, but they’re not. The problem often comes down to unused and ill-respected talent.
A couple of weeks ago I had lunch with two powerhouse women and one of them declared that she hated waste. It summed up exactly how I felt about parts of our economy. This was the perfect phrase to explain why I get fired-up at the fact we’re continually losing opportunities for engaging women in the workforce.
There are a lot of frustrating things for women at the moment. But it is retirement that is the hidden beast at the end of a gruelling line. Women need around $40,000 a year to retire comfortably, but the average woman retires with a total super balance of $112,600. Not nearly enough.
That money becomes even tighter when we consider the fact we’re living longer and that many of us will surpass the age of 90. I don’t know any woman who dreams of working until her late 80s.
We should all take a greater interest in our superannuation fees. Getting into the intimate details of our financial situation is rarely a fun thing to do, but it is worth the effort. Finding the most cost-effective superannuation fund can have dramatic effects on where we end up.
Women retiring today have the knowledge that you have to be financially fit. Nobody wants to be a burden to a partner or child in retirement. Maintaining dignity and respect is important for everyone, but without a more agile and adaptable superannuation system we cannot expect women to be self-reliant in retirement.
The treasurer Joe Hockey wants a mature debate about the state of retirement in Australia. Maybe he does not understand that for many women this is not an issue of when they will retire but how close to poverty they get. All he needs to do is look at the data that shows that older women are not financially supported into retirement – and for some that means homelessness.
Unless there are adequate policy measures to address superannuation contributions women will continually miss out. While you can take this into your own hands, managing superannuation effectively is an uphill journey that nobody should have to take alone.
Failing to recognise a lifetime of economic and social contribution is a stain on our society. This is not a discussion where men like Joe Hockey should be thinking about his mother. It is about his wife and children.
We are already wasting so much opportunity by not fully engaging women in the workforce. But ensuring the retirement savings of all women is of paramount importance and will also benefit from better and fair workforce participation.