It is widely acknowledged that women often miss out on crucial years of superannuation accumulation due to career breaks to raise and/or care for a family. Women’s balances suffer severely as a result of these breaks, with research showing a ‘flat-lining’ of women’s superannuation balances between the ages of 38-47, a pattern which has continued for the past decade.[1] This stagnation has serious implications for women at retirement with these missed years of accumulation resulting in an average difference of $80,000 in retirement balances between women and men.[2]

We therefore strongly support the Productivity Commission’s recommendation that the scheme include a superannuation component so that all parents, but especially women, can grow their superannuation savings while on parental leave.

[1] Australian Institute of Superannuation Trustees & Australian Centre for Financial Studies, Superannuation over the past decade: Individual experiences (2012).

[2] Association of Superannuation Funds of Australia, Developments in the level and distribution of retirement savings(2011).    

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