The superannuation gender gap remains one of the most significant financial challenges facing women today. Despite decades of progress in workplace equality, many women still retire with substantially less superannuation than men—affecting not only their retirement lifestyle but also their long-term financial security. Understanding why this gap exists and how it impacts retirement outcomes is the first step toward meaningful change.
What Is the Superannuation Gender Gap?
The women and the superannuation gap refer to the difference in retirement savings balances between men and women. On average, women retire with significantly lower superannuation due to structural, economic, and social factors that compound over a lifetime.
Key contributors include:
- Lower average wages
- Career interruptions for caregiving
- Higher rates of part-time and casual work
- Longer life expectancy requiring savings to last longer
Why the Gap Exists
- Career Breaks and Unpaid Care
Many women take time out of the workforce to raise children or care for family members. During these periods, superannuation contributions often stop or reduce dramatically, creating long-term gaps that are difficult to recover.
- Gender Pay Inequality
Lower wages mean lower compulsory superannuation contributions. Even small pay differences can result in large disparities when compounded over decades.
- Part-Time and Casual Employment
Women are more likely to work part-time, which reduces both income and employer superannuation contributions—especially when earning below contribution thresholds.
- Longer Retirement Periods
Women typically live longer than men, meaning their retirement savings need to stretch further, increasing the risk of financial stress later in life.
The Long-Term Impact on Retirement
The consequences of the superannuation gender gap extend well beyond retirement age.
- Reduced retirement income
- Increased reliance on government support
- Higher risk of poverty in older age
- Limited ability to handle unexpected expenses
For many, the gap results in delayed retirement or a significantly reduced standard of living.
Steps Women Can Take to Reduce the Gap
While systemic reform is essential, individual actions can also make a difference.
Practical Strategies
- Making voluntary or salary-sacrifice contributions when possible
- Consolidating super accounts to reduce fees
- Reviewing investment options regularly
- Claiming super contributions made on behalf of a spouse
- Staying informed about superannuation entitlements during parental leave
Learning more about Women and the superannuation gap can help individuals make proactive decisions earlier in their careers.
The Role of Policy and Employers
Closing the superannuation gender gap requires coordinated effort.
- Paying superannuation on parental leave
- Fair pay and promotion practices
- Flexible work arrangements without financial penalties
- Financial education targeted at women
Policy changes in these areas can have a powerful, long-lasting impact on women’s retirement outcomes.
Closing the Gap for a More Secure Future
The superannuation gender gap is not just a financial issue—it’s a social and economic one that affects millions of women’s futures. By understanding the causes, advocating for systemic change, and taking informed personal action, women can improve their retirement prospects and move closer to financial equality.