Retirement
Parents-to-be the most financially stressed
It’s been revealed that soon-to-be parents are more worried about money in the lead-up to having a child than at any other point in the parenting journey, and are also flying blind when it comes to awareness of the lack of superannuation entitlements for parental leave.
Parents-to-be the most financially stressed
It’s been revealed that soon-to-be parents are more worried about money in the lead-up to having a child than at any other point in the parenting journey, and are also flying blind when it comes to awareness of the lack of superannuation entitlements for parental leave.
AMP has undertaken research which found planning for a baby causes greater financial stress than actually having a child.
It said 71 per cent of those expecting a baby in the next year experience financial stress compared to just 45 per cent of those who have already had the child.
Ilaine Anderson, AMP’s director of workplace super, indicated that “planning for a baby often means looking ahead to a time where you are earning far less and spending far more”.
To combat such worries, Ms Anderson considered that employers should help reduce this stress by providing a checklist of their parental leave policies and the government benefits which may be available to soon-to-be parents well before the baby is born.
Confused by super
The financial wellness research showed super was not top of mind for those impacted by parental leave, with 68 per cent saying super is the last thing on their mind when having a child.
“Women still retire on significantly less super than men, due to a range of factors, but taking time out of the workforce to have a family is one of the main reasons for the gap,” Ms Anderson said.
The research indicated that 67 per cent of soon-to-be parents were unaware that super is not included in government parental leave schemes.
A further 71 per cent were unaware employers are not required to pay super for employees on unpaid parental leave.
Finally, a whopping 83 per cent were unaware employers are not required to pay super for employees on paid parental leave.
“Our research showed employers can help parents by including superannuation payments in paid parental leave or by giving staff information about reallocating some of their pay into super,” Ms Anderson concluded.
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