Australia’s Budget Takes Steps to Narrow Gender Gap in Pensions
Australia is taking steps to lift retirement savings of women in a bid to address the gender pension gap.
The government will remove the A$450 ($352) per month earnings threshold before employers are forced contribute cash into their workers’ retirement funds by July 2022, according to budget documents released Tuesday. Australia will also increase compulsory pension savings to 10% of a worker’s wage from July 1, as previously legislated.
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The plan comes as Australia’s national budget targets spending to improve the financial security of women as the nation continues a fast-paced recovery since suffering its first recession in about three decades last year. The government also announced increases in childcare spending to encourage women into work.
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“The government is focused on improving retirement outcomes for women by increasing superannuation coverage and making our system fairer,” Jane Hume, Minister for Superannuation and Women’s Economic Security, said in a statement.
Read more @Bloomberg
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