IFSA wants superannuation to be included in paid parental leave.
The Investment and Financial Services Association (IFSA) has called on the federal government to make superannuation contributions part of its parental leave policy.
The association said women in particular would be disadvantaged if legislation did not include these contributions.
"Australian women are punished for having children, are punished for taking time off to raise their children, and are punished by having lower superannuation," IFSA chief executive John Brogden said.
Australian women who had children and took a career break of five years in total would on average have 26 per cent less in superannuation savings by the time they retired at 67 than women who had worked continuously, according to a report prepared for IFSA by Rice Warner Actuaries.
Taking into account that men earn on average more than women of the same age, Rice Warner found that women who take a career break of five years will on average have $91,400 or 35 per cent less in their superannuation savings compared to the average Australian man.
"They will run out of money earlier, and will have to rely on the old age pension, than the average man," Brogden said.
The debate on paid parental leave received new impetus earlier this week, when federal opposition leader Tony Abbott put forward a set of proposals that would enable parents to take six months paid parental leave at salary level.
That is more than the current plans of the government to introduce 18 weeks paid parental leave at minimum wage.
"Whichever scheme the parliament adopts it has to include super," Brogden said.
Brogden did not want to discuss whether the government or employers should pay for the superannuation contribution, but did say the level should be the same as the superannuation guarantee contribution that currently stands at 9 per cent.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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