Women in Super calls for mandatory support for workplace savings schemes
9 July 2002

All employers should have to support savings schemes by providing access to financial advice in the workplace and a payroll deduction facility, according to a retirement savings policy launched by Women in Super today.

Women in Super also wants to see education about financial planning, budgeting and retirement savings a compulsory part of the secondary school curriculum.

"Women face a number of challenges when planning for their retirement income. We want to see Government policy that actively supports the development of workplace access to savings schemes through the mandatory provision of a payroll deduction facility," says spokeswoman Linda McCulloch.

"Education is critical to develop financial awareness for everyone and especially for women. People should have access to financial advice in the workplace and financial planning needs to be a compulsory part of the secondary school curriculum.

"Women on average earn less than men, are more likely to be in part-time work, are likely to take time out to have children or care for dependants, and are likely to live longer than men. The policy changes we have called for today will help meet their specific needs," says Ms McCulloch.

Women in Super also wants to see women's needs taken into account by both employers and companies that develop superannuation and savings products.

"The sorts of things that would help women are the facility for variable personal contributions, the option to continue insurance cover and continued vesting of employer contributions when members are on parental leave. Portability of an interest in retirement savings in the event of a marital settlement is also important.

"Good quality advice and suitable savings products should also be easily accessible for women who aren't working."

Women in Super wants to see Government Superannuation for single people living alone increased up to 65% of average ordinary time earnings (currently 42%) through a top-up amount for people whose total income is less than the current amount. The inequities in the current tax rules for those who earn less than $38,000 per annum should be removed so that employer contributions to superannuation schemes and investment income are taxed at 19.5% rather than 33%.

The ability to transfer and consolidate superannuation accounts should also be a compulsory feature of superannuation schemes.

Women in Super (Wahine Whakamoamoa) was set up to promote the specific issues relating to women and superannuation. It also aims to increase the number of women in decision-making positions within the industry and to promote education and training. Women in Super holds regular meetings in both Auckland and Wellington.