In terms of gender equality, we’ve come a long way over the past few decades. Australian homes and workplaces are very different places than they were in previous generations.
But there’s still a long way to go. When it comes to superannuation there isn’t a level playing field for Australian men and women.
Before we look at the gender super gap it’s worth looking at the gender pay gap. In May 2021, women working full-time earned $1,575.50 a week on average while men earned $1,837.00 – a gap of $261.50 or 14.2%1.
Not only do women tend to be paid less, they’re usually the main caregivers, with a staggering 93.5% of all primary carer leave taken by women. In 2018-19, among parents of children aged five and under, only 64.2% of women were in the labour force, compared with 94.6% of men2.
And women can suffer long-term financial effects from starting a family. Women with a child aged two or younger in 2001 experienced an average 77.5% reduction in earnings over the next 15 years, compared with those without children. Men with young children on the other hand faced no significant earnings penalty3.
This all adds up to a significant shortfall in retirement savings. The average super balance for a 60-year-old Australian man is $198,482, compared with $165,986 for a woman4
The Federal Government’s Retirement Income Review sums it up: “On average, compared with men, women have lower wages, are more likely to work part-time, take more career breaks, and experience worse financial impacts from divorce. These factors contribute to the gender gap in superannuation balances at retirement5.
Of course, we’re all different and everyone’s situation is unique. There are many households in which the woman earns more and the man takes on the bulk of the domestic responsibilities. And many Australians are happily single or childfree.
But the facts speak for themselves. On average, Australian women tend to earn less, spend more time out of the workforce raising a family and have less retirement savings as a result.
So whatever your personal circumstances – single or partnered, kids or no kids – you could be faced with a challenge when it comes to generating enough income to enjoy a comfortable retirement, particularly if you dipped into your savings to get you through COVID as part of the Federal Government’s early release of super scheme in 2020.
But all is not lost… here are five ways women – and men – can start to rebuild their super balance.
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1 Workplace Gender Equality Agency. Australia’s Gender Pay Gap Statistics. 27 August 2001
2,3 Retirement Income Review – Final Report, Section 3B, Gender and partnered status, p261, 2020
4 Canstar, How much super should I have at my age, 22 June 2021
5 Retirement Income Review – Final Report, Section 3B, Gender and partnered status, p257, 2020
6 Statista, Change in consumer spending per person during COVID-19 pandemic in Australia in March to August 2020, by selected goods and services
Source: AMP November 2021
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