Women and Super: Planning for retirement

Closing the Super Gender Gap

Australian women continue to enter retirement with substantially less superannuation than men, a disparity rooted in the gender pay gap, time out of the workforce for caring responsibilities, and higher rates of part-time employment. Recent data shows women aged 60-64 retire with about 25% less super, equating to a median gap of roughly $53,000 in some estimates, though figures vary by cohort and source. This leaves many women more vulnerable to relying heavily on the Age Pension or facing reduced living standards, especially since they tend to live longer.

Policy momentum has accelerated in the past year. From 1 July 2025, the Superannuation Guarantee rose to 12%, and super contributions began applying to government-funded Paid Parental Leave, a change expected to add thousands to women's balances over a career—potentially $7,200-$7,800 more for typical leave periods—and benefit over a million low-paid workers, 60% of whom are women. Further reforms loom: payday super, requiring contributions with each wage payment instead of quarterly, is scheduled to start 1 July 2026 to curb unpaid super, which hit women particularly hard. In 2022-23, one in four working women missed out on contributions, totalling $1.9 billion annually, with cumulative losses over a decade reaching $15.5 billion and individual retirement shortfalls exceeding $26,000 for many.

The Low Income Superannuation Tax Offset (LISTO) is also set for enhancement from 1 July 2027, raising the income cap to $45,000 and the maximum offset to $810, potentially adding around $15,000 in retirement value for 1.3 million low earners, again with women comprising 60%. These measures address long-standing criticisms that the system disadvantages those with interrupted careers or lower earnings.

Yet tensions remain. Progress in closing the gap has slowed despite increased female workforce participation, and unpaid super persists as a major drag, especially for younger and lower-paid women. Broader economic pressures, including stagnant wage growth in female-dominated sectors and the compounding effects of tax settings that favour higher earners, mean reforms may not fully offset entrenched inequalities soon. Recent research highlights a retirement confidence chasm: 73% of women worry about insufficient super, versus 56% of men, with fewer seeking advice. This underscores how the gap translates into everyday anxiety and constrained choices in later life.