The gender superannuation gap is one of Australia’s most persistent retirement inequality issues. On average, women retire with approximately 42% less super than men — a difference that can translate to hundreds of thousands of dollars in retirement savings.
Key Takeaways
- Women in Australia retire with approximately 42% less super than men on average
- The main drivers: the gender pay gap (~22%), career breaks for caring responsibilities, and higher rates of part-time work
- Spouse contributions allow up to a $540 tax offset for contributing to a low-income spouse’s super
- The government co-contribution provides up to $500 for low earners who make after-tax contributions
- Payday super (from 1 July 2026) will help by ensuring super is paid on all earnings including periods of parental leave
How Big Is the Gender Super Gap?
| Measure | Men | Women | Gap |
|---|---|---|---|
| Median super balance at retirement (approx.) | ~$183,000 | ~$105,000 | ~42% less |
| Average super balance (all ages) | ~$157,000 | ~$112,000 | ~29% less |
| Women aged 60–64 with less than $100,000 | — | ~38% | — |
Source: ASFA, ABS Survey of Income and Housing. Figures are approximate and vary by year.
Why Does the Gap Exist?
1. The Gender Pay Gap
The gender pay gap in Australia — approximately 22% on average (WGEA data) — directly flows through to super. Because the SG is a percentage of salary, lower wages mean lower contributions. Over a 40-year career, this compounds dramatically.
2. Career Breaks for Caring Responsibilities
Women are more likely to take extended career breaks for pregnancy, parental leave, and caring for children or elderly parents. During unpaid leave, no SG is paid. This is the single largest contributor to the gender super gap.
3. Part-Time and Casual Work
Women are more likely to work part-time — particularly when raising children. Part-time workers receive SG on their actual earnings, but lower working hours mean lower contributions and no opportunity for career progression that would increase the SG base.
4. Lower Lifetime Earnings
Occupational segregation (women concentrated in lower-paying industries and roles), lower rates of promotion, and the “motherhood penalty” all reduce women’s lifetime earnings — and therefore lifetime super contributions.
5. Longer Life Expectancy
Women live, on average, 4–5 years longer than men in Australia. This means their (smaller) super balance needs to last longer — compounding the retirement income gap.
The Compounding Impact
The gap is not simply a function of lower contributions. Because super is invested over decades, smaller contributions early in life result in proportionally larger deficits by retirement due to compounding:
Example: Impact of a 5-year career break at age 30
- Woman returns to work at 35 after a break
- Missed SG: ~$30,000 (based on $60,000 salary × 11.5% × 5 years)
- If that $30,000 had been invested at 7% for 25 years: ~$163,000 by retirement
A 5-year break in her 30s costs her not $30,000 but potentially over $160,000 in lost retirement savings.
Policy Responses
Recent and upcoming changes aimed at closing the gender super gap:
- SG on Government Parental Leave Pay: From 1 July 2025, the government will pay the SG on the federally funded Parental Leave Pay scheme — a significant change that directly addresses unpaid leave gaps
- Removal of $450/month SG threshold: From 2022, all employees over 18 receive SG regardless of earnings — benefiting part-time and casual workers who earn small amounts
- Spouse contribution tax offset: Tax offset for contributions to a lower-earning spouse’s super
What Women Can Do
- Make personal voluntary contributions when possible
- Take advantage of government co-contributions
- Ask a partner to make spouse contributions
- Review super on return from leave — use catch-up contributions
- Choose a well-performing, low-fee super fund
For a comprehensive strategy guide: How to Boost Super as a Woman.
For advice on retirement planning, speak with a licensed financial adviser via MoneySmart. For more: Super and Motherhood, Gender Pay Gap and Super.