Asking mums to cash-out super would just worsen the gender super gap
Super Members Council
Coalition costings released today confirm plans to make paying super on Commonwealth Parental Leave Pay optional for working mums.
‘Superannuation on Paid Parental Leave – parental choice’, is listed as a budget saving measure in costings of Coalition election commitments.
The cash-out proposal undermines the policy intent of boosting the retirement savings of new mums and is a concerning departure from bipartisan principles of universality and compulsion.
It also sends a deeply worrying message to women that they should sacrifice their future financial security to meet daily living costs – exacerbating women’s retirement poverty risk.
Time out of the workforce is a key reason that women are currently approaching retirement with around a third less super than men.
Making super on paid parental leave optional would just widen the super gender gap and worsen women’s retirement poverty.
Super Members Council CEO Misha Schubert urged a swift policy reversal.
“Telling new mums to cash out their parental leave super payments is a deeply worrying departure from the longstanding bipartisan principles of universality and compulsion in super that are key to a more financially secure retirement for all working Australians.”
“It undermines the whole policy intent to boost the retirement savings of Australian mums and to start to turn around the gender super gap – which has been widening for women in their 30s.”
“It sends a concerning message to new mums that they should sacrifice their future financial security to meet daily expenses.”
“And it risks putting pressure on mums to raid their retirement savings or being forced to do so by coercively controlling partners. We urge the Coalition to reverse its position.”
“Why is it that women are being asked to choose between financial security now and in retirement?”
Contact details:
Matt Read: 0432 130 338, [email protected]