Super for Women: Maximize Your Future

Closing the Gender Super Gap

Australian women face a entrenched retirement savings disadvantage rooted in career breaks for childcare, part-time work, and the gender pay gap. Recent data shows women approaching retirement hold about 23% less super than men, with some estimates indicating the gap at 20-25% or more; single older women and renters are particularly vulnerable to poverty in retirement.

The most significant recent change came in the 2025-26 Federal Budget: from 1 July 2025, the Superannuation Guarantee (now at 12%) applies to government-funded Paid Parental Leave (PPL) payments for eligible parents whose children were born or adopted on or after that date. This addresses a key driver of the gap, as time out of the workforce for family responsibilities has historically meant zero super contributions during those periods, compounding over decades.

Further momentum builds with PayDay Super reforms slated for 1 July 2026, mandating super payments concurrent with wages to eliminate delays and lost investment growth—issues that have cost women tens of thousands by retirement through unpaid or late super. Advocacy groups highlight that unpaid super alone has deprived typical working women of over $26,000 by retirement age.

Other moves include proposed LISTO enhancements from 1 July 2027, expanding support for low-income earners (many women in part-time or casual roles) and potentially adding substantial retirement value. Yet tensions persist: critics argue reforms fall short of fully addressing fractured working lives, while high-balance tax changes (delayed to July 2026) spark debate over fairness versus incentives for savings. Progress is evident—the super gender gap in self-managed funds narrowed by 5.5% in FY25—but closing it entirely could still take over a decade without bolder steps.