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Factsheet:
The gender gap in retirement savings
There is a large gap between the superannuation savings of Australian men and women. The current superannuation system linked to paid work, overwhelmingly disadvantages women who move in and out of paid work to care for family members.
Women continue to earn less than men and are more likely to be engaged in casual and part-time work, which are also contributing factors to the gender gap in retirement savings.
Right now, many women are living their final years in poverty. If we don’t act, another generation of women will face similar prospects.
Commissioner Broderick will work with experts to investigate the factors contributing to the gender gap in retirement savings and inform solutions for increasing women’s economic independence over their lifetime.
Statistics
- Women have significantly less money saved for their retirement – half of all women aged 45 to 59 have $8,000 or less in their superannuation funds, compared to $31,000 for men.1
- Currently, the average superannuation payout for women is a third of the payout for men - $37,000 compared with $110, 0002.
- In Australia, women working full-time today earn 16 per cent less than men.3
Quotes from Listening Tour participants
- “I’m a mother who has been out of the paid workforce for two years and will probably be for the next four years. I can’t see how, after this time out of the workforce, my earnings will ever come close to my partner’s. I dread to think of how I will ever manage if I have to rely upon my meagre superannuation contributions in retirement.”
Entry on Listening Tour Website
- “I am freaking out about retirement. After three months in hospital and enormous medical bills I had to start again.”
Canberra community consultation participant
- “I talk to many women who can’t retire when they thought they were going to be able to because of family transmitted debt. They are supporting kids through university and helping kids with a mortgage.”
Sydney community consultation participant
[1] Simon Kelly, 'Entering Retirement: the Financial Aspects' (Paper presented at the Communicating the Gendered Impact of Economic Policies: The Case of Women's Retirement Incomes, Perth, 12-13 December 2006).
[2] Ross Clare, 'Are retirement savings on track?' (The Association of Superannuation Funds of Australia Limited 2007)
[3] Australian Bureau of Statistics, 'Average Weekly Earnings, Australia, February 2008, Cat no. 6302.0' (2007).
