At a recent conference hosted by the National and Torres Strait Island Council (NATSIC), a gloomy conversation point emerged. The discussion was meant to be about Aboriginal superannuation. But Anthony McCarthy, marketing development manager for Catholic Super, says a surprise was in store.
'Most of the questions were about funeral benefits and (provisions) for the beneficiaries,' he says. 'Almost none of the questions were actually about retirement or how to access money at an earlier stage during the life span. It was a little bit shocking. They didn't seem to see it as something they could access through their lifetime.'
Superannuation is not generally available before the age of 55. For most of the population of Australia this is scarcely a problem, as they are likely to live well into their 80s. The question tends to be more about whether there be enough of a nest egg to last that long.
But the average life span of Aboriginal Australians is much lower — according to the Australian Bureau of Statistics, just 67.2 years. Many will not live long enough to derive financial advantage from their super.
Graeme Mundine, executive officer for the Aboriginal Catholic Ministry in the Sydney Archdiocese , says the age difference between the Aboriginal and non-Aboriginal populations ranges between nine and 15 years 'depending on where you are living'. He says the average is about 12 years difference. 'It used to be 20.'
One reason the misalignment of life expectancy has not received great attention is that Aboriginal super is not well developed.
According to a recent report by the Association of Super Funds of Australia, 'Equity and Superannuation — the Real Issues', Indigenous Australians have lower coverage and lower balances on average than the general population. Indigenous Australians' coverage is about 70 per cent for men and 60 per cent for women, compared to 85 per cent for men and 80 per cent for women in the population more generally.
Average balances are also lower than for the equivalent Australian population as a whole.
Current superannuation arrangements and administrative requirements, according to the report, often do not match the circumstances and needs of indigenous Australians, particularly those in remote areas who may have difficulty communicating with their superannuation fund, claiming benefits or identifying lost accounts.
Craig Arthur, national administrator of the National Aboriginal and Torres Strait Islander Catholic Council (NATSICC) says the shift in governmental policy to raise the preservation and retirement age for superannuation access,