Media Release – Stephen McCallum, Industrial Organiser, United Firefighters Union of Australia Tasmania Branch, 17 January 2024

Tasmanian firefighters and paramedics demand action on superannuation

“The United Firefighters Union of Australia Tasmania Branch (UFU) and the Health and Community Services Union Tasmania Branch (HACSU) have commissioned the Australia Institute to examine superannuation shortfalls impacting firefighters and paramedics in Tasmania.

“Simulations published today by the Australia Institute’s Centre for Future Work demonstrate that the majority firefighters and paramedics entering the workforce right now will not have enough superannuation to retire with the same level of financial security as other workers.

“All workers need to reduce their living expenses when they retire, but firefighters and paramedics would need to reduce their retirement living expenses by a further 18.5% in order for just half of emergency service workers to avoid having their superannuation run out during their lifetime.

“Under relatively optimistic assumptions firefighters and paramedics will run out of superannuation 6 to 10 years before their life expectancy.

“When considering financial risk factors, it becomes much worse, particularly for women, those who do not own their own home, or if there are changes in superannuation investment returns, or tax policy.

“Firefighters and paramedics undertake physical work in difficult circumstances, sometimes with a life depending on them. After 60, most firefighters and paramedics don’t feel they can perform as well as they used to and retire early for the safety of the community and their colleagues.

“Professionals who spend their career serving the community often retire early at the expense of their own financial security.

“It’s already difficult for people over 60 to find work, but the extreme specialisation of skills makes it almost impossible to find other work with similar pay. There aren’t many employers looking to hire older workers with qualifications focused on fire suppression and rescue disciplines.

“Early retirement impacts superannuation balances in a number of ways. You miss out on 7 years of superannuation contributions, the interest in the final years is reduced as you have to dip into the balance earlier, and it has to cover an additional 7 years of life expectancy.

“We have a superannuation system that punishes firefighters, paramedics and their families by ensuring that the vast majority of these workers will not have enough superannuation to support them in retirement.

“We call on the state and federal government to urgently take action to rectify this emerging issue before it becomes a crisis.