7 February 2022
ASFA calls for super baby bonus to address women’s retirement savings gap
The Association of Superannuation Funds of Australia (ASFA) today, in its Pre-Budget Submission, called for the introduction of a $5,000 Super Baby Bonus payable directly into people’s superannuation following the birth or adoption of a child.
“While the superannuation system is well-designed and working for the majority of Australians, there is a significant gap of 23.4 per cent in superannuation balances between men and women as they approach retirement,” said ASFA CEO, Dr Martin Fahy.
“A recent consumer survey undertaken by ASFA found more than 80 per cent of respondents believe the Government should take measures to boost the super balances of women who take time out of the workforce to have children.”
The proposed payment which could benefit up to 300,000 women per year would take the form of a $5,000 superannuation baby bonus into the person’s superannuation account. This would be equivalent to the amount that a person would receive from Super Guarantee (SG) contributions on a $60,000 wage for one year.
“Broken work patterns, COVID-19, and the early release of superannuation, which was used to help get Australians through the pandemic, have eroded the retirement savings of low-income earners and women in particular,” said Dr Fahy.
“It is now essential that repair be undertaken to low-income earners and women’s retirement budgets through targeted assistance.”
This would supplement proposals to pay SG on paid parental leave and the urgent legislation currently in Parliament that abolishes the $450 per month threshold where workers receive no superannuation.
The ASFA Pre-Budget and Pre-Election Submission also explores other alternatives to boost the superannuation balances of low-income earners and gig economy workers including targeted payments depending on people’s income, balances and age.
For further information, please contact:
Brian Karlovsky, 0451 949 300.
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.