The AFA has made a raft of "family friendly" recommendations in its submission to the Senate Inquiry into Economic Security for Women in Retirement, including access to quality child-care and lifetime superannuation contribution caps for low-income earners.
In the submission, the AFA said change was necessary and the government would reap the benefits in terms of future spending and of improving the financial security both of men and women in retirement.
The AFA made seven recommendations:
1. Convenient access to affordable, quality child-care, including out of school hours care;
2. Consider introducing lifetime superannuation contribution caps for low-income earners and those with breaks in their careers due to caring responsibilities;
3. Removal of the monthly $450 threshold for Superannuation Guarantee (SG) contributions;
4. Retention of the Low Income Super Contribution (LISC) scheme;
5. Consider an SG contribution tax-free period after parental leave to allow catching up on lost contributions;
6. Inclusion of SG on the government Paid Parental Leave scheme and other carer payments; and
7. The government should implement a comprehensive education and specific superannuation-focused financial literacy program targeting women in specific segments of greatest need.
In its submission, the AFA argued the savings would place less pressure on the age pension across the board.
"As statistics prove, women live longer than men, so the reliance on the aged pension is more significant for females than males," it said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
22 Jan 2018Hub24 announces platform enhancementsBy Staff Reporter
22 Jan 2018FPA responds to FPEC criticismBy Aleks Vickovich
19 Jan 2018AFA to host international adviser group AGMBy Staff Reporter
19 Jan 2018ASIC warns licensees over death nominationsBy Staff Reporter
18 Jan 2018ABA awaits government action on advice reformsBy Killian Plastow
18 Jan 2018SMSF sector grows 26% in 5 yearsBy Staff Reporter
- view all