Australian women retire with, on average, approximately 25 per cent less superannuation than men. This gap is not primarily the result of individual choices — it reflects structural features of the labour market and the superannuation system that systematically disadvantage women throughout their working lives.
The Causes
Three structural factors drive the gap. First, women are more likely to work part-time and in lower-paid sectors, resulting in lower SG contributions over their career. Second, career interruptions for caring responsibilities — whether for children or elderly parents — mean women spend more time outside paid work, contributing nothing to superannuation during those periods. Third, the 12-month waiting period before SG applies to casual and part-time workers (since reformed) disproportionately affected women who are overrepresented in these employment categories.
Paying Super on Parental Leave
One of the most significant recent reforms has been the extension of superannuation contributions to the Commonwealth government-funded parental leave scheme. From July 2025, super is paid on government parental leave payments, addressing one of the most obvious structural gaps. This reform is expected to improve retirement outcomes for women who take parental leave — though it does not address the broader gap created by extended career interruptions for caring.
The Retirement Consequences
The superannuation gap translates directly into a retirement income gap. Women are significantly more likely than men to retire in or near poverty, particularly those who are single or widowed in retirement. The rate of homelessness among older women — one of the fastest-growing cohorts among Australia's homeless population — is a direct consequence of inadequate retirement savings combined with housing insecurity. This is not a marginal problem: it affects hundreds of thousands of Australians.
