Super is a ticket to financial independence and a secure retirement. But is this at risk for Australian women?

While many of us thought that we could leave COVID and lockdowns in 2020, the impacts of COVID-19 are still being felt throughout Australia, and throughout the economy. Few have been immune from the effects, with job losses and redundancies widespread. We know that Australian women have been disproportionately hurt by lockdowns, whether it was juggling work obligations while caring for kids; having reduced hours; or being made redundant. You might remember that part of the government’s response was to adjust superannuation early access laws, allowing workers and sole traders impacted by COVID-19 to withdraw $10,000 from their super fund up until 31 December 2020.

Recently, it was reported that women in abusive relationships may have even been ‘coerced’ into withdrawing superannuation. This is obviously deeply disturbing – not only does it highlight the financial vulnerability of women in abusive relationships, but is a sharp reminder of the need to do more to address the structural issues that leave women with substantially less super than men when they reach retirement age. The state of women’s super balance also matters in the short term, because some funds require that you maintain a certain balance, or maintain contributions, in order to keep these insurance policies valid. Many Australian women hold insurance through their super funds, including for total and permanent disability (TPD) insurance. This can be an important source of income if they are unable to work because of illness or injury. This blog explores how women may have been affected by this policy long into the future.