In many ways, gender equality has grown, yet one issue still stands: women retire with far less money than men. According to the superannuation gender gap, women in Australia are retiring with about 25-30% less super than men, setting them up for real money problems when retirement begins. Many women struggle to pay for basic needs and housing when they stop working.
Understanding this gap helps you make better decisions about your retirement. In this article, we explain what causes the superannuation gender gap and what you can do to fix it. Knowledge is power as far as your financial future is concerned.
What is the superannuation gender gap?
The superannuation gender gap refers to the difference between men's and women's retirement savings. Women usually have much less money when they retire. It's often not a minor difference, but tens or hundreds of thousands of dollars less to live on.
It happens because several problems add up over time. It's not just one single issue but many factors working together. These problems affect almost all women, no matter what kind of job they do.
Why women have less super
Women take time off work more than men do. Many women stop working to take care of children or elderly parents. When they go back to work, they often work part-time instead of full-time. Part-time work means less pay and less money going into superannuation. Studies show women are five times more likely to be the main family carer.
Women also receive less pay than men for the same work. Women in Australia earn about 13-14% less than their male counterparts. Because super is based on your pay, lower pay means lower super contributions. Over many years, this adds up to a big difference in retirement savings.
Women often work in lower-paid industries: retail, hospitality, teaching, and healthcare often employ many women. However, they often pay lower wages. Men typically work in the higher-paying industries such as mining and construction. This means men get a larger amount of money in their super without doing anything. Many women feel less confident about money and investing. This makes them opt for safer investments that earn less over time. Women are also less likely to add extra money to their super. They use government programs designed to help them less often.
How This Affects Women in Retirement
The super gap creates serious problems for women after they stop working. Many women struggle to afford basic things like food, medicine, and bills. They have to live with caution, which prevents them from enjoying retirement completely.
More women rely on the Age Pension as their main income. The pension helps but only provides enough for a basic lifestyle. Women can't afford extras or handle unexpected costs easily.
Housing becomes a major problem for older women without enough superannuation. Many struggle to pay rent or keep their homes. Women over 55 are now the fastest-growing group of homeless people in Australia. This is a troubling development.
Women usually live longer than men, which makes the problem worse. Their smaller savings need to last for more years. This means more years of financial stress and worry.
Simple Things You Can Do Now
You can put extra money into your super even if it's small amounts. Talk to your employer about salary sacrificing. This means putting part of your pay into super before tax. This can save you money on tax and boost your retirement savings.
The government has programs to help grow your super. If you put money into your super, the government might add extra money too. Your partner can also put money into your super and get a tax benefit. These programs are free money—use them if you can.
Many people have old super accounts they've forgotten about. You can find these accounts online through the Australian Tax Office website. Combine all your super into one account to save money on fees. This simple step can save you hundreds of dollars every year.
If you take time off work, talk to your partner about keeping your super growing. Some couples agree that the working partner will put money into the non-working partner's super. This keeps both people's retirement savings on track.
Check your super fund at least once a year. Look at how much you're paying in fees and what investments you have. Younger people can usually choose investments that grow more over time. Make sure you're not paying for insurance you don't need.
A financial adviser can help you make a plan for retirement. They can show you the best ways to save money and grow your super. Look for advisers who understand women's financial needs and charge clear fees.
What Else Needs to Happen
Individual action alone can't fix the whole problem. Employers need to pay men and women fairly for the same work. They should support flexible work without hurting people's careers or super contributions.
The government needs to make changes too. Many people think the government should pay super during paid parental leave. This would stop women losing super when they have babies. Other changes could include fixing the pay gap and helping people who take career breaks.
Workplaces can help by offering better support for parents returning to work. They can also work harder to promote women into higher-paying jobs. More women in leadership means more women earning better salaries and building better super.
Taking Control of Your Future
Learning about the super gap helps you make better money choices. You don't have to accept having less money in retirement. There are things you can do right now to improve your situation.
Organizations like eairwoman - empowering women's financial equality by helping them understand money and plan for retirement. They provide free information and support. You're not alone in this—many women are working to close their super gap.
Every small step you take today helps your future. Putting away even a little extra money grows over time. Checking your super and making smart choices adds up to real differences in retirement.
Your Next Steps
Start by logging into your super account and checking your balance. See how much you have and how much you'll need for retirement. This gives you a clear picture of where you stand.
Look for any lost super accounts you might have forgotten about. The ATO website makes this easy. Bring all your super together into one account to save on fees.
Find out if you can get government help with your super. Check if you qualify for co-contributions or other programs. This is free money that can boost your retirement savings.
Talk to your partner or family about super. Make sure everyone understands why it matters. Plan together to keep both people's super growing, even during career breaks.
Consider getting professional advice if you can afford it. A financial adviser can help you make the best plan for your situation. They can find opportunities you might miss on your own.
Why This Matters
The superannuation gender gap affects millions of Australian women. It's not fair that women work hard all their lives but end up poor in retirement. You deserve financial security after years of work and contribution.
Closing the gap needs everyone to work together. You can take personal action while supporting bigger changes in workplaces and government. Both types of action matter and make a difference.
Your retirement security is important. Don't wait to start improving your super. The choices you make now shape your life after work. Take control and build the retirement you deserve.
Remember These Key Points
Women retire with 25-30% less super than men because of career breaks, lower pay, and part-time work. This creates poverty and housing problems for many older women. You can improve your situation by putting extra money into super, using government programs, and checking your fund regularly.
Find and combine old super accounts to save on fees. Talk to your partner about keeping super growing during career breaks. Get professional advice if you need help making a plan.
It's never too late to start. Whether you're young or close to retirement, you can take steps now to improve your financial future. Every action counts toward a more secure retirement.
