UniSuper: Women and finance

Financial Gender Divide

Australian women continue to navigate a landscape marked by systemic financial disadvantages. The gender pay gap, calculated at 21.1% for 2024-25, means women earn 78.9 cents for every dollar men do. This disparity stems from factors like industry segregation, unpaid care responsibilities, and under-representation in high-paying roles. Recent data shows progress, with the gap dropping 0.7 percentage points from the prior year, driven by employer actions and legislative reforms. Yet, at the executive level, the gap widens to 26.2% for CEOs, equating to $185,335 less in total remuneration for women leaders.

Superannuation imbalances compound these issues. Women approaching retirement hold about 19% less in super balances than men, a gap narrowed slightly to 17 years for closure based on 2025 trends. Key changes include the abolition of the under-18 super carve-out, which disproportionately affected teenage girls—55% of under-18 workers but only 35% guaranteed super. From July 2025, super contributions on government-funded paid parental leave will add 12% to payments, targeting the 'motherhood penalty' and potentially increasing women's super by $11,000 over a career. The Super Guarantee rate hit 12% in 2025, aiding low-income earners, many of whom are women.

The 2026 cost-of-living crisis intensifies these challenges. Inflation at 3.8% outpaces wage growth of 3.4%, eroding real incomes. Housing costs rose 5.5%, food by 3.4%, hitting women harder due to higher part-time rates and care duties. Young women aged 18-40 report skipping meals, delaying medical care, and enduring unsafe housing to manage budgets. Student debt and insecure jobs add layers of stress, with 62% of millennials prioritizing finances over health.

Non-obvious tensions emerge in stakeholder dynamics. While women now hold 54.3% of government board positions—up for four years—pay equity lags, suggesting representation doesn't automatically translate to economic parity. Trade-offs abound: women work more hours at the expense of wellbeing to close gaps, yet face backlash in male-dominated sectors like finance and mining, where gaps exceed 40%. Counterarguments highlight slow progress, with full pay equality projected for 2054 without accelerated action. Surprising data shows casual employment and reduced hours disproportionately affect women, widening lifetime earnings disparities by $57,000 near retirement.