Read The Times Australia

Daily Bulletin

Spirals and circles, snakes and ladders. Why women's super is complex

  • Written by: Kathleen Riach, Associate Professor in Management, Monash University
Spirals and circles, snakes and ladders. Why women's super is complex

This week’s International Day of Older Persons reminds us Australia has made an international commitment to work towards the eradication of poverty in old age, and that at least one side of politics, Labor, has developed a suite of policies it says will help.

The retirement savings of single women are well below those of single men, and homelessness among older women is climbing.

Labor’s policies are built around superannuation. It has promised to remove the A$450 per month wage threshold at which employers make compulsory contributions meaning they will make them for all workers, and to itself make contributions on behalf of workers during paid parental leave.

Read more: Super. If Labor really wanted to help women in retirement, it would do something else

Questions have been asked about whether these moves would do much at all to lift superannuation balances.

Questions have also been asked about whether, even if they did boost superannuation balances, that would be the best way to help the women most in need in old age.

Women’s lives aren’t linear

Unpaid work, part-time and interrupted work, and the gender pay gap are only some of the reasons women are poor in retirement. A lot of the time the reasons are far more complex.

When I asked women over 40 to draw their careers on pieces of paper, they drew circles, zig zags and spirals, what one called called: “ups and downs, and rounds and rounds, and a bit, sort of, snakes and ladders”.

The drawings contrasted with the linear, continual and upward (albeit interrupted) financial trajectory usually assumed by financial planners.

Sexist workplaces and ageism have a lot to do with it.

I and my colleagues heard accounts of harassment that resulted in women being denied promotion despite being good candidates and leaving lucrative jobs or re-starting their careers in lower-paid, less hostile environments.

Domestic norms such as the “second shift” (the work undertaken by women at home in addition to their paid jobs) and the “mental load” (the job usually assigned to women of being aware of what needs to be done to keep the household running) eat away at what’s possible.

And choice isn’t all it is talked up to be

Business legends Sheryl Sandberg (chief operating officer of Facebook) and Marissa Mayer (until recently president and chief executive officer of Yahoo!) talk about the battle for economic security as a battle for the right to make choices, or as Sandberg puts it, to “lean in”.

But inflexible work structures, hard to get child-care, expensive childcare, and enduring social norms make it hard to exercise choice.

Taken too far, the idea that women are free to make choices can lead to unhelpful suggestions that they should bear the financial consequences of having children – a suggestion rarely made about men.

Superannuation is sold as being about choice. It is built around individual accounts, with a choice of fund.

But women’s superannuation balances are also determined by relationships and cultural expectations, among them gender inequality in family care for older or disabled family members and the division of household labour.

Read more: The superannuation myth: why it's a mistake to increase contributions to 12% of earnings

To present different outcomes as the results of choices undermines the pervasive and real cultural scripts that co-opt women into particular roles.

Attempts to change those roles, by, for example, replacing maternity leave with paternity leave, can carry long-term financial penalties for men as well, as shown in research from other countries.

The real roots of poverty are deeper

Women certainly aren’t helpless victims. Many I spoke to knew they had traded off financial security in their old age for other aspirations or needs.

But “choice” and financial literacy won’t be nearly enough to get women who lack financial security back on track.

If we want women to be secure in retirement, we will have to examine the reasons why their lives zig-zag and spiral and resemble games of snakes and ladders. We will need to examine the environment in which their choices take place.

Authors: Kathleen Riach, Associate Professor in Management, Monash University

Read more http://theconversation.com/spirals-and-circles-snakes-and-ladders-why-womens-super-is-complex-103763

Business News

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...

NDIS Support Coordination Explained: What Does a Support Coordinator Actually Do?

NDIS support coordination explained means understanding how a professional can help participants n...

When Should You Speak with Divorce Lawyers in Sydney?

Divorce involves more than completing an online application. It can affect parenting arrangements, p...

How to Choose a Reliable Hot Water System Installer on the Gold Coast

Choosing a reliable installer is just as important as choosing the right hot water system. A qualifi...

How Microtask Platforms Support Modern Digital Promotion

Digital promotion has become increasingly complex. Businesses communicate with customers through w...

Cosmetic Dentistry Options From a Brisbane-Based Dental Team

You cover your mouth when you laugh. You skip the group photo. Maybe you edit pictures to soften a...

Essential Steps to Handle Sudden Tooth Pain and Dental Crises

A sudden, throbbing toothache can totally stop your whole day, with no warning. When severe pain, ...