The Association of Superannuation Funds of Australia (ASFA) is calling on the Government to support a commitment to equalise super for men and women by 2030*.
Women retire on average with around 23% less super than men** and while the gap has been slowly reducing, ASFA Senior Policy Adviser Helena Gibson says it is time to implement initiatives that will have measurable impacts on reducing the gap in super balances.
“As we recognise International Women’s Day in 2022 and the theme #breakthebias, we are calling for support for women who take time out of the workforce to have or care for a baby."
ASFA has done some economic modelling which shows that a large portion of the inequity that arises when having a baby could be reduced for a woman earning $80,000 and eliminated for a woman earning $60,000 or less by introducing two simple measures; the first being Superannuation Guarantee on paid parental leave, and the second being a Super Baby Bonus of $5,000 for each child a woman gives birth to or adopts.
“There is strong support among Australians for policy action. Results of a recent ASFA survey show that more than 80 per cent of people agree that government should try to boost the super balances of women who take time out of the workforce to have children.”
Notes: Based on a survey of 1,000 people.
“This means the 300,000 women in Australia that give birth each year will no longer be 'behind the eight-ball' with their superannuation because they have chosen to have a baby and take a year out of the workforce,” said Ms Gibson.
“This is the first step to closing the retirement savings gap and needs to be supported by measures that support eliminating the gender pay gap and providing gender-neutral flexible work arrangements."
*Based on balances of an average 30-year-old man and woman (in 2022) and assuming the woman has one baby over the period to 2030.
** For those aged 60-64 based on median super balances in June 2019
For further information, please contact:
ASFA Media team, 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.
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