The Government’s announcement that the Superannuation Guarantee will be paid on government Paid Parental Leave is a welcome and long-awaited measure which takes an important step towards closing the retirement savings gap for women says the Association of Superannuation Funds of Australia (ASFA) – the voice of super.
“This milestone announcement will deliver a huge boost to equity in the superannuation system,” said ASFA CEO, Mary Delahunty.
“For too long, women have retired with significantly fewer savings on average than men as a result of taking time off work, or working reduced hours to have and raise children.
“It’s about bloody time.”
The median superannuation balance in June 2021 for those aged 60 to 64 was around $212,000 for males and $159,000 for females, which equates to a retirement savings gap between women and men of 25%.
“A new generation of women who receive the full benefit of the Superannuation Guarantee payment on their Government Paid Parental Leave stand to add thousands to their retirement balances,” said Ms Delahunty.
An ASFA survey conducted in 2022 found strong community support for boosting the retirement savings of women who take time out of the workforce to have children.
Should government boost the super of women who take time out of the workforce to have children?
Source: ASFA Consumer Survey (January 2022). Based on a survey of 1000 people.
“This is a welcome move that goes some way to combat the retirement savings gap and to signal that women’s contributions to work and to caring actually matter. A pleasure to hear on International Women’s Day and fitting with the theme that challenges society to ‘invest in women’,” said Ms Delahunty.
For further information, please contact ASFA Media team: 0451 949 300
About ASFA
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.
