REST commissioned new research*, Making a Break, to better understand the circumstances surrounding Australians taking breaks from their careers and the financial impact this has on their superannuation and retirement.
It explores the number and types of career breaks that working Australians take, including the stages of life these occur. Notably, it explores the behaviours of men and women in financially preparing for time off work and the consequences of these actions on their retirement savings.
The research revealed that two-thirds of working Australians have taken at least one career break at some stage in their working lives, with an average of 3.5 career breaks overall. Health breaks were reported as the most common reason for career breaks, particularly among men, while maternity and leave to care for children were the top reasons for women.
Just 6 per cent of women sought financial advice before taking their career break and less than one in five women made a superannuation contribution during their break.
The research also found that 53% of career breakers did not consider the long term financial impacts of their break, costing women an average super saving of nearly $160,000+.
At REST we want to equip women at every life stage with simple ways to maximise their super when taking a career break.
Whether career breaks are planned or come out of the blue it’s important to speak with a REST Adviser either before, during or after a career break. They can help you identifying which strategies may be available to you now, that may not have been before. For instance, you may be eligible to receive the Government’s co-contribution scheme or spouse contributions.
If you're having a baby or thinking about it, our simple tips and resources may also help you to plan ahead.