The Gender Super Gap: Why Women Retire With Less — And What You Can Do About It

Let me start with a number that genuinely makes me angry every time I say it out loud.

On average, Australian women retire with 23% less superannuation than men.

Not because women are worse with money. Not because women don't work hard enough. But because the superannuation system — despite being designed to give everyone a fair shot at retirement — has a structural problem that disproportionately affects women. And most people don't talk about it.

Today, I want to change that.

Why the Gap Exists

The gender super gap isn't one problem. It's the compounding effect of several smaller ones, stacked on top of each other over a working lifetime.

The pay gap comes first. Women in Australia still earn less than men on average — the national gender pay gap sits at around 21.8% according to the Workplace Gender Equality Agency. Because superannuation is calculated as a percentage of your income (currently 11.5%), a lower salary means lower super contributions from day one.

Career breaks hit women harder. Women are far more likely to take time out of the workforce — or reduce their hours — to care for children or elderly family members. Every year out of the workforce is a year without employer super contributions, without investment growth on those contributions, and without the compounding effect that makes super so powerful over time.

Part-time work is predominantly female. Around 68% of part-time workers in Australia are women. Part-time work means lower income, which means lower super contributions — and historically, workers earning under a certain threshold weren't even entitled to super at all (this threshold was removed in 2022, which was a win, but the damage from decades of exclusion is already done).

Women live longer. This one is often overlooked. On average, Australian women live about four years longer than men. That means your retirement savings need to stretch further — but you've typically had less time to build them.

What the Numbers Actually Look Like

The median superannuation balance at retirement for women is around $157,000. For men, it's around $204,000. That's a gap of nearly $50,000 — and that's just the median. For women who took extended career breaks, the gap is often much larger.

To put that in context: if you're drawing down $40,000 per year in retirement, a $50,000 gap means your savings run out more than a year earlier than your male counterpart's. And if you live into your late eighties or nineties, that shortfall becomes genuinely serious.

What You Can Actually Do About It

Here's the part I want you to focus on. The gap is real, but it's not inevitable. There are concrete steps you can take — at any stage of your career — to build a stronger super balance.

1. Know your current balance. Log into your super fund's app or website and find out exactly where you stand. You can't make a plan if you don't know your starting point.

2. Consolidate your accounts. Many women have multiple super accounts from different jobs — each one quietly eating fees. Consolidating into one account stops the fee drain and makes your balance easier to track. You can do this through myGov.

3. Make voluntary contributions when you can. Even small amounts add up significantly over time thanks to compound growth. If you can afford to salary sacrifice even $50 extra per fortnight, do it. The tax benefits make it one of the most efficient ways to build wealth.

4. Don't pause super during career breaks if you can avoid it. If you're taking parental leave, check whether your employer continues to pay super during that period — many do now, especially since the government made super on paid parental leave compulsory from 1 July 2025. If your employer doesn't, consider making personal contributions to keep the momentum going.

5. Have the conversation with your partner. If you're in a relationship and one of you is earning less or taking time out of the workforce, talk about super splitting. Your partner can contribute to your super account, and those contributions may be tax-deductible for them.

6. Check your investment option. Many Australians are in their super fund's default "balanced" option without ever questioning whether it's right for them. If you're under 50 and have decades until retirement, a higher-growth option may be more appropriate. Check what your fund offers.

The Bottom Line

The gender super gap is a systemic problem, and fixing it properly requires policy change. But while we wait for the system to catch up, there's a lot you can do to protect your own financial future.

You don't need to earn more than your partner. You don't need to sacrifice your career. You just need to be informed, intentional, and consistent.

That's what Culgan Wealth is here for.

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This article is general information only and does not constitute personal financial advice. For advice specific to your situation, please consult a qualified financial adviser.