Super for those on parental leave: Gov considers expanding super

The Women’s Economic Equality Taskforce (WEET) has presented the Federal Government with a proposal to increase super entitlements for workers on paid parental leave. 

This suggested reform could help Aussie parents financially by helping them stay on track for retirement. 

“It encourages more fathers to take leave, because they’re not sacrificing more income,” says Chair of the Women’s Economic Equality Taskforce, Sam Mostyn. 

If this proposal is successful, workers might be able to take care of their growing families without falling behind in super. 

Easier retirement planning with more super

The more super you have, the more flexibility you should have when it comes to planning your retirement. 

While paid parental leave is funded by the government, superannuation is not. And despite encouragement from the WEET to make this change, no commitments have been made by the government.

In any case, it’s important for all workers to adopt a more hands on approach when it comes to super as it could become the main source of income in retirement. Better planning is part of this. 

Enjoy a super retirement

When mapping out a retirement strategy, there are some things you may want to consider. The first are your day-to-day expenses, and might include costs like groceries, fuel, and utility bills. 

Then you could think about whether you will have enough super to support yourself in retirement. As it stands, data from the Australian Financial Security Authority (AFSA) has suggested that Aussies may need about $100,000 in super (in addition to the Age Pension) to enjoy a modest retirement. 

If you’re not sure how to navigate your finances, it’s worth speaking to a financial adviser to gain another perspective as they might help you come up with a plan.

Like what you’ve learned about super so far? Why not hop over to our superannuation guides page and find out more about topics like how super can fit into your retirement planning.