Rest calls on government to fix 'motherhood penalty'

New insights from Rest Super highlights the ongoing impact of the "motherhood super penalty", with women continuing to fall behind in retirement savings due to time out of the workforce and reduced earning capacity, the $100 billion super fund said.

The fund is urging the federal government to consider introducing superannuation "carer credits", which are payments designed to offset the impact of unpaid care on retirement balances.

Rest general manager of public policy and advocacy Enrico Burgio said the current system fails to properly recognise unpaid care as a form of economic contribution.

"Our superannuation system continues to treat unpaid care as time away rather than time given," Burgio said.

"Interrupted work patterns, reduced hours and periods of unpaid caring work are among the strongest contributors to the gender super gap."

The data shows the gap emerges early and widens during peak caregiving years. Among members aged 25 to 40, women receive significantly lower annual contributions than men, reflecting lower incomes and more frequent part-time work.

This trend is echoed nationally, with Rest adding it's members reflect a broader, systemic issue across Australia, with Australian women retiring with 26% less super than men.

Rest said around two thirds of surveyed members backed government intervention to compensate for lost super during periods of unpaid care, with support even higher among women.

While recent policy changes, including paying super on government funded parental leave have been welcomed, industry groups argue more comprehensive reform is needed.

Rest said extending support through carer credit models would help close the gap by recognising unpaid care as economically valuable, rather than penalising it.

With women more likely to work part-time and take career breaks, the fund warned without further change, the financial impact of caregiving will continue to follow women well into retirement.