Older Women and Poverty

The Hon. G.E. GAGO (15:41): Recent reports confirm what we have known for some time, that women are not financially secure in their older life and retirement. Social workers and charities speak of the tsunami that faces this country as older people face a lack of retirement savings, restricted access to work and a sharp rise in housing costs. This is particularly true for older women, and is a reality that we are already facing.

In June 2014, the average male superannuation balance was $134,800 compared to the average female super balance of only $83,100. A recent study has shown that at retirement age women have barely half the superannuation savings of men. This problem is created by factors including relationship breakdowns, a more casualised workforce and the burden of unpaid domestic care and childcare work—all of which falls predominantly into the hands of women.

The ATO's most recent data shows that 70 per cent of single, retired women rely on the full age pension. According to Industry Super Australia, 40 per cent of retired women in Australia live below the poverty line. David Whiteley, Chief Executive of Industry Super, argues that the gap in super savings has been due to the system being designed around men working full time and being the principal breadwinner. Men receive 67 per cent of the super tax breaks, which is resulting in improved retirement security for a cohort of recipients that are the least likely to require it.

Deputy Chief Executive for Industry Super Australia, Robbie Campo, has stated that following on from this system, rather than accumulating wealth women are accumulating poverty. Annabel Spring, head of Wealth Management at the Commonwealth Bank, argues that the community needs to destroy the barriers for women to financial security and that the gender pay gap, reduced levels of workforce participation and lower superannuation balances are detrimental to our society as a whole, and that change would generate $460 billion in savings for the economy.

This problem, as well as the growing number of women reaching very old age, has pushed older women into poverty and even more into homelessness. Almost 10,000 Australian women over the age of 55 accessed homelessness services in the last year, with charities reporting an increase of up to 44 per cent over the past five years.

While people over 55 make up 25 per cent of Australia's population, it is believed that they are unrepresented in the homelessness statistics because they are less likely to receive assistance from homelessness services, compared with a younger cohort. Despite the proportionally lower rate of presentation to these services, specialist homelessness services data collection through the Australian Institute of Health and Welfare reports that older clients seeking assistance has increased at a greater rate than any other age group.

The three major reasons for seeking assistance from older clients were housing crisis, domestic and family violence and financial difficulties. The rate of home ownership is declining among older Australians, and there is discrimination against older women in the rental market as they so often rely fully on the age pension for income. It has also been found that the largest proportion of older women suffering from housing crisis have led what is considered to be a conventional life and have often rented while they worked and raised a family. Very few required welfare assistance previously and most were presenting to homelessness services for the first time.

Social researchers point out that there is a stereotype of older women who experience homelessness as being substance abusers, mentally ill or irresponsible and that this view often hinders the serious structural change needed to address this issue. While physical and mental health are matters that force older women into housing uncertainty, they are not the only factors. Financial independence is crucial if we are to support women into their old age. By closing the gender pay gap and addressing structural bias in the superannuation system, women will be more able to rely on their savings to support themselves.

With the number of Australians over 55 forecasted to increase substantially over the coming decades and a projected increase of 75s and over to multiply threefold, the issue of homelessness in older people must be seriously addressed. Older women are already at a starting point of financial disadvantage, but if you then add illness, loss of employment, relationship breakdown and increased housing and living costs it is clear that they are a demographic facing serious hardship. It is vital that governments across the country address the hardship that older women currently face and ensure that women do not face this disadvantage into the future.