Facts about women and super
01 March 2018
When it comes to saving for retirement, some women face a number of challenges, resulting in the average woman retiring with much less super than a man.
Here are some of the reasons why:
Women generally earn less than men
On average, women working full-time earn 14% less than men; that’s a difference of over $240 per week.
However, women working in public administration and safety earn 5.1% less than men, the narrowest gap for any industry in Australia.
The good news is that the gender pay gap in some sectors is narrowing, with women in retail earning 3.9% less than their male colleagues. However, there's still work to be done to reduce the pay gap across all sectors.
Source: Workplace Gender Equality Agency, 2019
More women are working part-time
Many women take time off to raise a family, and they return to the workforce in part-time positions. While this provides flexibility, it does reduce their income and contributions to their super.
In Australia, around 32% of working women are in part-time or casual positions, while only 14% of men with jobs are working casually or part-time.
Source: HILDA survey, 2019
Women are living longer
Women are living longer than ever before. The average 65 year-old woman today will live another 23 years, close to three years longer than the average male.
While this is good news for women it also means that a woman may have to stretch out her retirement savings that little bit longer than the average man.
Source: ABS Life Tables 2016-18
Women are retiring with much less super than men
Career breaks, working part time and lower salaries mean that women retire with significantly less super. On average, women in the 60-64 age bracket are retiring with a super balance of around $123,000, while men are retiring with balances of $154,000, a difference of $31,000.
This means that many women may have a much more frugal retirement. Alternatively, they may need to work longer or contribute more to secure a more comfortable standard of living in retirement.
Source: ASFA, 2019
What can you do to boost your super?
There a number of ways to boost your super. These include combining your super, salary sacrifice, spouse and after-tax contributions, as well as government co-contributions if you are eligible.
However it does depend on your individual circumstances.
The best strategy is one that takes into account a range of factors including your level of income, whether you have a partner or not, and of course, your own retirement expectations.
A financial planner can help you explore what strategy is right for you.
So if you want to boost your super and achieve your long-term financial goals, give us a call on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday.