ANZ Joint superannuation account will offer financial security to women retirees

ANZ’s Global Wealth division’s Chief Executive Joyce Phillips has advocated allowing couples to open a joint superannuation account, like other joint accounts in bank and mortgages. The call for such joint accounts would foster the superannuation savings of women, who are compelled to depend on their pensions after retirement.

Phillips attended a Senate inquiry held in Adelaide on Tuesday, where she put forth a wide array of proposals to ensure improvement of savings scheme for women after retirement in Australia. She indicated the fall of several Baby Boomer women born from 1946 to 1964 are likely to outlive their retirement savings by 16 years. The Senate inquiry is working on ways of uplifting retirement savings of women.

The chief executive claimed that two-thirds of Australians who retired were married and had difficulties in shifting their finances across other regions. A joint superannuation account will enable the retirees to enjoy better flexibility with enhanced focus on superannuation savings schemes. In addition, the women retirees will get an opportunity to have their own financial records even if they broke up with their partners.

Allowing opening a joint superannuation account will make sure one is able to manage the contribution caps adequately even if one partner interrupts in his/her career path. It will act as a shield upon the couples.

According to the estimates derived from the industry, it is predicted that around 90 percent of Australian women will have inadequate finance when they retire. The main cause of the discrepancy is the gender pay gaps and extended service limits. With joint superannuation accounts, women retirees will have a secure financial future, even if they are without their spouses.

Another recent announcement from ANZ is that it will no more provide funding to traditional coal-mining projects, but will offer financial aid of minimum AU$10 billion for renewable energy, energy efficiency and reforestation.

Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.