Labor is pledging to deliver a $400 million financial boost to help narrow the gender superannuation gap.

Opposition Leader Bill Shorten has vowed to deliver the financial advance for more than 160,000 women if he is elected into power at the next general election.

Under the proposed Labor policy, women earning less than $150,000 a year will be given top-up superannuation payments when on parental leave.

Labor argues the plan is fair because it addresses one of the main factors why women have around 40 per cent less in super savings as they leave work to raise a family.

Labor’s proud of our superannuation system, but it’s not working as fairly as it should for women as it is for men – and we’re going to change that today.

To find out more, watch below: pic.twitter.com/lLA27EvveB

— Bill Shorten (@billshortenmp) September 18, 2018

Rice Warner CEO Michael Rice tells John Stanley the plan “does make sense” and highlights how “a lot of it is psychological”.

“If people think that there’s a gap at the moment and that they’re going to lose ground and they’re never going to catch up, they might despair and never bother to catch up.

“But if you think that there are a number of mechanisms being used to protect you… then people are likely to become more engaged.”

Click PLAY below to hear the full interview