Gender gap costing Aussie super system billions
New research from Colonial First State Global Asset Management (CFSGAM) has found that the superannuation gap between men and women is costing Australia's super system billions of dollars.
According to CFSGAM’s Power of Closing the Gap report, reducing the difference in superannuation balances between men and women could inject nearly $146 billion into Australia’s super system.
One of the authors of the report, CFSGAM senior analyst, economics and market research, Belinda Allen said, “In the current environment of low economic growth and decreasing returns, closing gender gaps and increasing the participation and investments of women represents significant opportunities to increase both economic growth and market value.”
CFSGAM analyst, economics and market research, Carlos Cacho said, “Currently the median super balance of an Australian woman is 35 per cent less than that of a male.
“If super balances were equal, based on the current number of women in the workforce, there would be an aggregate dollar increase of $94 billion.".
“If we were then to increase the participation rate to equal men, and the median super balances of women were the same as men, the aggregate super balance could increase by $146 billion.”
Mr Cacho noted that these calculations were based on the median balance, based on the average the impact would be even greater, “This would represent a 7 per cent to 23 per cent increase in aggregate superannuation”.
Eliminating these gaps could not only help secure the financial wellbeing of more Australian women, but also change the economic and investment landscape for the better, the report said.
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