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Retirement

Some Aussies are missing out on $17k in super every year

  • May 17 2022
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Retirement

Some Aussies are missing out on $17k in super every year

By Jon Bragg
May 17 2022

A report has found that hundreds of thousands of Aussies are at a significant financial disadvantage, foregoing $175,000 in super on average by retirement age.

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Some Aussies are missing out on $17k in super every year

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  • May 17 2022
  • Share

A report has found that hundreds of thousands of Aussies are at a significant financial disadvantage, foregoing $175,000 in super on average by retirement age.

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The super balance of a primary carer at retirement is reduced by $17,700 on average for each year they remain in the role, according to an analysis released by Carers Australia.

The peak body representing Australia’s carers also revealed that the lifetime earnings of primary carers fell by $39,600 for every year they continue in the role.

“The focus of politics in the past few weeks has been on employment and superannuation, including the Coalition’s proposed Super Home Buyer scheme and the Labor Party’s now-retracted proposal to contribute superannuation on paid parental leave,” said Carers Australia CEO Alison Brook.

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“What neither party is considering is the reality for so many of Australia’s carers who are unlikely to have an ample superannuation balance to begin with.”

The recently released Caring Costs Us report from Carers Australia found that carers miss out on an average of $175,000 in superannuation by the time they reach 67 in addition to lost wages totalling $392,500

“Carers Australia had previously revealed in 2020 that the cost of replacing all informal care with commercial market services was valued at $77.9 billion per annum, before the pandemic commenced,” Ms Brook noted.

“Coupled with the Caring Costs Us report findings, there is a strong argument for addressing the barriers and long-term impacts on carers’ financial and economic security.”

A survey conducted by the Australian Bureau of Statistics (ABS) from 2018 indicated that 861,000 people were primary carers, of whom 71.8 per cent were women.

Furthermore, the survey found that 1 in 10 Aussies were carers and that these individuals were more likely to be receiving government pensions or allowances and less likely to be engaged in secure employment than the population overall.

“In the end, everyone either knows a carer, or has been, is, and/or will be a carer at some stage in their lives. We have been asking ‘who cares for carers?’ in the lead up to this election with a disappointing response,” said Ms Brook.

“We are looking forward to working with the next Australian Government to address the economic and other disadvantages experienced by Australia’s 2.65 million carers.”

Some Aussies are missing out on $17k in super every year
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