Today is Human Rights Day.
This year the UN is devoting the day to the launch of a year-long campaign for the 50th anniversary of the International Covenant on Economic, Social and Cultural Rights (ICESR) and the International Covenant on Civil and Political Rights (ICCPR). It is salient to recognise ICESR, a covenant that embeds everyone’s right to an adequate standard of living, including housing at a time when housing is seen increasingly as an investment or commodity. Access to affordable and appropriate housing continues to be a roadblock to the full realisation of human rights for too many, particularly older, single women. The confluence of poverty and the housing crisis has pushed too many older, single women to the housing precipice.
Treasurer Scott Morrison recently identified one of the gravest flaws and biggest challenges in superannuation when he pointed to the gender gap in retirement savings: “We need a superannuation system that reflects changes in people’s lives.”
The Economic Security for Women in Retirement inquiry is currently underway, with over 80 submissions being considered. These solutions could bring about change to a system that, at the moment, leaves women retiring with $90 000 less than their male counterparts.
As it currently stands, superannuation amplifies existing gender-based economic inequality. As long as the gender pay gap persists, the compounding effects of superannuation will exacerbate gender inequality. All the multifaceted and intersecting problems that see women paid 17.9% less than men, are locked in by superannuation. We can tweak superannuation to soften these effects, through low income super contributions and addressing the super tax concessions that largely benefit high income earners, but fundamentally the underpinning issues related to the gender pay gap need to be addressed.
In addition to this, superannuation is structured in a way that penalises the lived experiences of carers. Women continue to perform the lion’s share of unpaid caring work. The cost of this unpaid work is indeed great. The introduction of carer’s credits and superannuation on paid parental leave must be considered as a way to recognise and value this work.
The way forward will require a bifurcated approach. On one hand, reform is needed to ensure that superannuation is responsive to gendered experiences and inequalities.
On the other hand, safety nets for women retiring today need urgent strengthening and improvement.
All the structural reform in the world will not change the bleak future facing this current cohort of older, single women.
A lifetime of gender inequality is packaged up in the meagre super payouts that retiring women can expect. Only 10% of retiring women cite their main source of income as the superannuation, compared to 25% of retiring men. Single, older women are over-represented in poverty indicators and increasingly retiring in the private rental market or with a mortgage. As a result, older, single women are increasingly vulnerable to homelessness. According to figures from the last Census, there are 468 850 single women on low-median incomes over the age of 45 who do not own their home (not including women living in social housing).
Facing such grim prospects, access to affordable and appropriate housing is key to a dignified and safe retirement.
An urgent and collective response is needed to ensure, in the shadow of this economic injustice and looming crisis, older women can access adequate income and housing supports for their retirement.
A number of organisations are working to increase provision of affordable housing that meets the needs of older women. This work needs to be backed by governments working together, with an eye to boosting affordable housing supply and shaping a fairer housing system through tax and policy reform.
Women’s Property Initiatives (WPI) in Melbourne is currently investigating the feasibility of a shared equity scheme for single, older women in the private rental market. The scheme is looking to target women who have some assets, but not enough to purchase a home. Access to shared equity will allow these women to leverage what equity they do have to purchase a home in partnership with WPI – preserving the value of the capital they invest and providing security of tenure that is safe, affordable and accessible.
YWCA Canberra manages Lady Heydon House, an alternative, more affordable model of housing, providing five single, older women in Canberra with accommodation set at 74.9% of market rent.
Examples such as this need to be built upon and expanded to meet the growing demand and must be supported by governments.
While we seek reforms to improve the gender responsiveness of superannuation, we must strengthen our immediate responses for women currently retiring into uncertainty. These women have worked all of their lives in unpaid work that we are only beginning to recognise and value. Unfairness in super has let them down, it is vital that we strengthen the safety nets so that we don’t fail them again.