Paying super on paid parental leave could boost women’s retirement savings
New data from the industry superannuation fund for the health and community services sector, HESTA, shows that a mother of two could have $14,000 more at retirement if super was paid on her paid parental leave. Modelling shows that the policy change...
New data from the industry superannuation fund for the health and community services sector, HESTA, shows that a mother of two could have $14,000 more at retirement if super was paid on her paid parental leave. Modelling shows that the policy change could mean 2.6% more for an aged care professional with two children at retirement. Leading industry groups, such as Aged & Community Care Providers Association, the Health Services Union and the Australian Nursing and Midwifery Federation, have formed an 18 member coalition to advocate for the retirement equity measure. More than 80% of HESTA’s 950,000 members are women, typically on low and middle incomes.
“Every extra dollar our members can add to their super can really make a difference when they retire,” said HESTA CEO Debby Blakey. “Many HESTA members have lower account balances as they often work in casual, part-time or insecure work or in industries that are typically lower paid, like aged care and early childhood education. “Achieving adequate super savings is then even harder as they’ll often also need to take long periods of unpaid time out of the workforce to care for others.”
A survey of HESTA members found that 85% supported paying super on parental leave. The figures were even higher - 91% - for those under 35.
“Parental leave is the only commonly taken form of paid leave that does not include superannuation, sending a clear message that caring work is undervalued,” Ms Blakey said.
Paul Sadler, Aged & Community Care Providers Association Ltd (ACCPA) interim CEO said, “The Superannuation Guarantee payment is an important tool, which assists working Australians to prepare for retirement. As significant is the Federal Government’s Paid Parental Leave Scheme, which supports parents to spend precious time with their new-born and young children. “It’s a logical step to continue to pay superannuation during this important parental leave period to help families prepare for retirement.”
