21 Apr 2009

HESTA Super Fund is calling on the Federal Government to retain the super co-contribution scheme in the upcoming Federal Budget, warning that women would be hit hard by removal of the scheme.

Anne-Marie Corboy, the CEO of the health and community services sector fund HESTA, said removing co-contributions would send the wrong signal to the community about superannuation.
 
“Women are key beneficiaries of the income-tested co-contribution scheme, where a voluntary payment into super by a member may be matched by a government contribution,” Ms Corboy said.

“Women have only half the superannuation savings of men and are more likely to earn wages below the co-contribution cut-off. We should be expanding the co-contribution program to increase women’s investments.”

Approximately 85% of HESTA’s 650,000 members are women, and 1 in 10 members make voluntary contributions.

“Women are more likely to take breaks from the workforce – to raise a family, for example – and few receive super while they’re on those breaks,” said Ms Corboy. “The co-contribution scheme is extremely valuable in helping them make up lost ground.”

“Long-term investment is about time in the market,” Ms. Corboy added. “Women understand this, but they need the super co-contribution scheme to help them save for an adequate retirement. It’s not just a helping hand – for many, it’s an essential component of their super savings strategy.”