IFSA continues push for super in paid parental leave

Superannuation should be included in the paid parental leave scheme discussions currently before the Senate, according to Investment and Financial Services Association (IFSA) chief executive John Brogden.

Brogden said IFSA research, conducted by Rice Warner Actuaries, demonstrated the impact on the quality of life for people who had to leave the workforce for any period of time.

He said women were effectively being punished for having children, considering that the research revealed that the average woman would have a grossly inadequate retirement due to low superannuation savings.

“The typical Australian woman will have $91,400 — or 35 per cent — less than a man in her superannuation savings if she has children,” he added.

The research also showed that a woman who takes five years out of the workforce will have 26 per cent less superannuation on retirement than a woman who has not, while a woman retiring at 67 must save an additional 13 per cent for retirement compared to a man in the same situation (since she has a longer life expectancy).

“Including superannuation in the new parental leave provisions will mean that people will have access to better retirement income and will not have to rely so readily on the age pension,” said Brogden.