Motherhood comes with a penalty
Superannuation is built on the assumption that you will have a continuous, full-time attachment to the workforce and accumulate enough savings for a secure and comfortable retirement. But it’s modelling that fails to take into account the “motherhood penalty”.
That’s the penalty women pay for bearing and raising the next generation of Australians. It’s one of the biggest factors impacting women’s financial security and leaves them more vulnerable to poverty in old age.
The gender pay gap has been stuck between 13% and 19% for two decades, with women still paid less than men in many industries. Female-centric occupations in particular, such as nursing and teaching, are undervalued and pay less than male-dominated occupations.
“It’s unequivocal. There is a significant financial penalty that results from unpaid caring work and women still take on the lion’s share of it,” says Robbie Campo, group executive for brand, engagement, advocacy and product at the industry super fund Cbus.
She says the statistics show that men and women have a fairly similar savings pattern until the typical childbearing years,
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