A new report by the Australia institute has found women, and low income earners are being left behind by superannuation tax concessions that favour higher income earners. The research also found that tax concessions are set to cost the federal government more than the age pension within a decade.
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00:00 Deborah Moxon was a nurse before a career change to buying and selling cafes.
00:07 You want a snack? Yep, quick.
00:09 At age 60 she's found herself without enough superannuation to retire.
00:13 Show of hands for mum? Give us your paw.
00:16 Too young to access the aged pension with rent on the rise, she's reconsidering her future.
00:21 I certainly couldn't afford to retire.
00:24 The little amount of super that I had is nowhere near going to sustain me for the rest of my life.
00:30 New research shows increasing numbers of Australians, particularly women, will retire into poverty unless superannuation tax concessions are rethought.
00:40 Every year there's about $48 billion worth of tax concessions on superannuation and nearly 60% of it is going to the richest 20%.
00:51 People who are able to make voluntary superannuation contributions tend to be on higher incomes.
00:56 All those on lower incomes, people who run small businesses and women who take out time to raise children, tend to be unable to make superannuation contributions.
01:05 This means when it comes to retirement they're often left behind and are more likely to retire into poverty.
01:11 So if you're someone who's in and out of the workforce or for periods of working by yourself and you aren't able to afford to, in a sense, put in that extra bit for superannuation, it really can hurt you when you get to retirement and you find that actually you're going to really struggle.
01:27 With traditional retirement unaffordable for Deborah, she's invested in a camper van so she doesn't have to pay rent while she travels and works around the country.
01:36 And her advice for other women in her position?
01:38 You can do it, absolutely you can do it and don't let anything stand in your way.
01:43 Off on her next adventure.
01:45 adventure.
01:45 [BLANK_AUDIO]