Frequently Asked Questions (FAQ)
Why Does The Superannuation Gap Exist?
The super gap exists for three main reasons:
- The gender pay gap, which ranges between 15-30% on an hourly wage basis. However, if you measure it on a total remuneration basis – including overtime, bonuses, etc – it is actually 21.4%
- Time out of the workforce. Typically this is for maternity leave but it can often be leave caring for sick relatives or the elderly. While you’re not earning an income, you’re not contributing to your super.
- Work type. 68% of women work part-time or casually. If you’re working part-time, you’re contributing to your super part-time.
Why does the pay gap still exist?
The simple answer is that reporting on the gender pay gap is not mandatory, and that any pay gaps are not financially penalised. The Equal Pay Act was legislated in 1969 – yes, 50 years ago, but there is a lot of room for improvement.
Reducing the pay gap to nothing has been achieved overseas – in Iceland, for example, where financial penalties ensure equal pay.
What is considered a comfortable retirement for a woman?
ASFA defines a comfortable retirement for someone living as part of a couple as $545,000. Importantly, this also assumes ownership of your home.
How much will a woman need to live on in retirement?
ASFA estimates that to live a ‘comfortable’ retirement a single person needs $545,000 and a couple need $640,000. Importantly, this assumes that you own your home i.e. no rental or mortgage payments will be made once you retire.
How long can a woman expect to live in retirement?
It all depends on what age a woman retires. If she lives until the average age of 85, and has retired at the historic retirement age of 65, then she’ll need retirement monies for 20 years.
Is Super Life just for women?
Super Life has been designed for women, by women. But there’s no reason men can’t join too.
Why are women your priority?
- Women face a gender pay gap, even starting with university graduates, who earn 11% less than their male peers.
- This gender pay gap widens throughout the career progression.
- Women are generally not paid superannuation while on maternity leave (although we are starting to see a few companies do so).
- Women are given the lion’s share of parenting responsibilities.
- Women usually carry the burden of caring responsibilities when it comes to sick family members.
- Women do the majority of unpaid domestic labour.
- In between the parenting and the unpaid domestic labour, women struggle to be able to work and juggle family life while earning any meaningful income.
In summary, very few women have the ability, capacity, and support to earn enough funds for retirement given family and social constraints.
For these reasons, women are our first priority.
We also recognise that men are challenged when it comes to their superannuation, particularly low-income earners. So we’re working on a solution there too.
Where did you get these stats?
- Women retire with 58% as much super as men
- 40% of single women enter retirement in poverty
- The fastest growth in Homelessness Australia is the 55 year old woman
- The value of the unpaid economy each year in Australia is $2.2 trillion, of which childcare alone is $345bn
- The gender pay gap is 21.3% by total remuneration
- Women make up 68.5% of all part-time employees and 37% of full-time employees
- The cost of two children in fulltime childcare is greater than the average woman’s salary (source: Average weekly earnings $1409.00 per week. After tax $1085.45, source ABS (2018) ATO (2018). National Average Weekly cost per Child $512.35 (Care for Kids, 2018)
When will I be able to start using Super Life?
We’re working on it every day. And every night. So … soon. If you sign up to our waitlist, then you’ll be notified as soon as it’s ready.