A major superannuation fund has called for reforms to ensure Aboriginal and Torres Strait Islander people are financially secure in retirement.
AustralianSuper Chief Member Officer Rose Kerlin told National Indigenous Times that the company's ambition "for all Australians to live well in retirement" can't be realised unless there is recognition "that some Aboriginal and Torres Strait Islander members may have unique needs that require us to serve them in different ways".
"To do this, we're introducing service improvements and initiatives to reduce barriers to inclusion and participation with superannuation. Part of this is the launch of an Outreach Program to select remote, very remote and outer regional areas to provide administration services, assistance and education," she said.
"We're also working to ensure our employees have the knowledge, understanding, and respect for Aboriginal and Torres Strait Islander cultures, histories and traditions, so they can better service and support First Nations members with the aim of helping them achieve their best financial position in retirement."
Analysis of the most recent HILDA (Household, Income and Labour Dynamics in Australia) data shows that the median super balance for Aboriginal and Torres Strait Islander women is $20,000 and the median super balance for men is $27,000. In the general population, the median super balance for women is $50,000 and for men is $80,000.
The 2019 report Money Stories: Financial resilience among Aboriginal and Torres Strait Islander Australians, by the First Nations Foundation, the Centre for Social Impact and NAB, found that participation of Aboriginal and Torres Strait Islander people in the financial services sector and superannuation is low; with an estimated 43 per cent of Aboriginal and Torres Strait Islander people fully or severely financially excluded from the financial services sector.
The same report found superannuation coverage for Aboriginal and Torres Strait Islander people is about 68 per cent for men and 70 per cent for women, compared with rates of 87 per cent for men and 86 per cent for women for the total population of Australia.
Ms Kerlin said one fund making changes is a start, but system-wide reform is needed to close these gaps.
"The superannuation system should be equitable, independent of income, and straightforward independent of cultural background and traditions. For Aboriginal and Torres Strait Islander people, this is not always the case," she said.
"As Australia's largest super fund, we are advocating for important changes to address structural barriers which may prevent Aboriginal and Torres Strait Islanders from engaging with the super system to help achieve better retirement outcomes.
"We advocate for system-wide improvements that will increase balances by removing regressive taxation for low-income earners, a group in which Aboriginal and Torres Strait Islander peoples are proportionally over-represented; making it straightforward for Aboriginal and Torres Strait Islander peoples to nominate beneficiaries for their super consistent with their cultural practices, without a tax penalty; and assisting Aboriginal and Torres Strait Islander peoples in identifying where a deceased person's super is held."
Ms Kerlin said the action AustralianSuper has taken so far is based on feedback from Aboriginal and Torres Strait Islander members, financial counsellors and other stakeholders.
The company said in response to feedback and as part of adherence to their own Reconciliation Action Plans, it has worked to improve service delivery, via a specialist, culturally trained team within the Contact Centre to serve Aboriginal and Torres Strait Islander members; an interpreter service to the Contact Centre to support members in 50 First Nations Languages; and an Outreach Program to provide services to Aboriginal and Torres Strait Islander members in remote, very remote and outer regional areas.
AustralianSuper has also promoted financial literacy through programs targeted to a small number of remote schools in the Northern Territory and educational radio programs simplifying superannuation and insurance targeted to First Nations people, in partnership with CAAMA (Central Australian Aboriginal Media Association).
In 2023, Wakka Wakka Elder Uncle Dennis led an ultimately federal court case to lower the pension age for Indigenous people, highlighting the persistent gaps in both life expectancy and retirement financial security.
