What did the research tell us?
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.
How likely are you to financially plan for your career break?
Speak with a Rest Adviser† either before, during or after a career break. They can help you with strategies you may not have considered before. For example, you may be eligible to receive the Government's co-contribution scheme or spouse contributions.
*The survey was conducted by Lonergan Research between 4 October and 9 October 2017 of 1,030 Australians (both males and females) who have ever taken a career break of at least three months.
^This is the economically modelled amount of lost superannuation balance of working women at the retirement age of 67 between those taking no career breaks and those taking career breaks, of which they took 4.2 career breaks on average. The calculations are based on self-reported cost per career break; 9.5% compulsory contribution to superannuation is assumed for the entire working life; 15% contribution tax; and superannuation account balance is compounded annually at 4.95% (based on average 10-year rate of return after tax and fees from APRA Annual Fund-level Superannuation Statistics 2016). No voluntary contributions are modelled. The results are on 2017 Australian dollars with no adjustment for inflation
† Rest Advice is provided by Rest Advisers as authorised representatives of Link Advice Pty Ltd ABN 36 105 811 836 AFSL 258145.