17 October 2025
As National Carers Week nears an end, research from HESTA highlights the significant impact caring responsibilities can have on retirement outcomes.
Research by the $100 billion fund finds 42% of its surveyed members provide unpaid care for children or loved ones, significantly affecting their ability to participate in paid work.
HESTA’s data also reveals caring responsibilities are a major reason for the one in three retirements that are unplanned, with this figure higher for women at close to 40%. Almost one in five members who retire early do so due to caring duties, making it the second most common reason for early retirement after physical health concerns.
As a result, many carers – who are mostly women – miss out on accumulating retirement savings throughout their working years, limiting their choices in retirement. This plays a significant role in the gender super gap, which currently means Australian women retire with 25% less super than men, on average1.
HESTA CEO Debby Blakey said this week is a great time to celebrate carers across Australia and the impact they have on the lives of others.
"National Carers Week is a great opportunity to pause and reflect on the incredible contribution carers make to our communities. It also presents a chance to recognise their dedication to loved ones often comes with a financial cost and consider how we can ease the impact,” Ms Blakey said.
"With 80% of our members women and most working in the health and community services sector, we see first-hand the impact of caring responsibilities.
“That’s why we continue to advocate for changes to reduce the financial burden on our carers. This includes the great news this week of proposed changes to the Low-Income Superannuation Tax Offset (LISTO), which will benefit many carers who work part-time with the potential for thousands to be added to their retirement savings. Our pre-budget submission this year also detailed the potential for super to be added to the Carer Payment which could, like LISTO, make a meaningful difference to retirement outcomes.
“As we celebrate carers, we will continue to seek opportunities to better recognise and reward the valuable contribution carers make to our society by helping them build stronger financial futures."
HESTA has been calling for reform to the LISTO for several years and strongly supports the government’s announcement on Monday. The intent of this policy is that no Australian pays more tax on their super than on their wages. Increases to tax brackets and changes to the superannuation guarantee had resulted in 1.3 million Australians being over-taxed in their super.
Super Members Council research2 has shown the adjustments could add an extra $60,000 at retirement for workers who remain in the second income tax bracket throughout their working lives.
The Fund's 2025-26 pre-budget submission3 also laid out recommendations for superannuation contributions on the Commonwealth Carer Payment and a worker income tax credit to support carers’ return to work after periods of caring.
Ends.
1 Super Members Council Report – Older women’s economic security in retirement (Sept. 2025)
2 Super Members Council Report – Older women’s economic security in retirement (Sept. 2025)