Retirement
Superannuation guarantee to be paid on government paid parental leave, says ASFA
Retirement
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step towards bridging the retirement savings disparity between genders.
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step towards bridging the retirement savings disparity between genders.
ASFA, recognized as the voice of the superannuation industry, views this adjustment as long overdue but highly beneficial in moving towards equity within the superannuation system.
ASFA's CEO, Mary Delahunty, expressed strong support for the move, stating, "This milestone announcement will deliver a huge boost to equity in the superannuation system." Delahunty highlighted the chronic issue where women, on average, retire with significantly less savings compared to men, which is often the result of taking career breaks or working fewer hours to care for children. She candidly remarked, "It’s about bloody time."
Statistics from June 2021 illustrate the severity of the issue, with the median superannuation balance for those aged 60 to 64 sitting at approximately $212,000 for men and $159,000 for women. This disparity of 25% underscores the long-standing retirement savings gap between genders.
Delahunty expressed optimism about the potential impact of this measure on future generations of women, stating, "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."
Furthermore, an ASFA survey conducted in 2022 revealed significant community support for initiatives aimed at enhancing the retirement savings of women who take a hiatus from their careers to have children.
Reflecting on the broader implications of the government's announcement, Delahunty said, "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." She also noted the timeliness of the announcement, aligning with International Women's Day and its theme encouraging society to 'invest in women.'
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