The gender pay gap is not just a man and a woman being paid differently for the same job. It measures how women and non-binary people often end up with less money, compared to men. Since superannuation payments are based on your pay, a gender pay gap over your lifetime can lead to a gender superannuation gap.
Our research shows some of the key causes are:
Gender biases in hiring, employment type, pay levels, promotions, and firing all change the types of jobs and industries available for the long term.1
Women do more unpaid caring work, which often means part-time or casual paid work instead of full-time.1 And a big reason for this is the cost and availability of childcare.
Mothers who change from partnered to single mother households experience a 20% decline in household income.2 And domestic and family violence makes it harder to find and keep a job, or to save money.3
1 in 7 women going through menopause will need to take time out of the workforce or retire prematurely. Even retiring 5 years earlier could see a loss of $60,000 in retirement savings.4
And we have the stats to prove it. In real terms, Australia has a 12% gender pay gap, with women needing to work an additional 44 days a year to earn the same as men (ABS, 2024). This is an unacceptable situation when we know both men and women are equally well-educated (ABS, 2024).
What might be a small difference in graduating salaries can turn into a significant gender super gap by the time we retire.
Not only do women work an average of 55.4 hours of paid and unpaid work a week (2 hours more than men),5 there are fewer women in the workplace: 63% of women, compared to 71% of men.6
12%
Pay gap (average full-time weekly earnings)8
18%
Gap in senior management1
Taking just 5 years off work can mean more than $60,000 less in super.4 And on average, women retire sooner than men — at 63 years old compared to 66 years old.7
25.1%
Retirement savings gap9
31%
of women rely on their partner’s income to meet retirement living costs7
If you're curious about how your super stacks up, compare your super balance to the average balance for men and women your age. (The ABS doesn't list data on non-binary people's super.)
If you're on a low income and have a spouse or partner, see if they can help grow your super with a spouse contribution or super splitting.
Ask for that raise, since your super is based on your pay. And check that your super is going into your account regularly. Make sure your family members can't access your super details (unless you've specifically let them), and contact us if you need help securing your account.
Check you have insurance on your super account in case a serious illness or injury means you can't work.
When you're on a low income, the government may give you a co-contribution when you add a little extra to your super. If you're on a higher income, salary sacrifice may be an option instead.
Switch investment options if you're not in the right option for you. The ASX's Australian Investor Study in 2020 found that women take fewer risks when investing, and review their investments less often than men.
The research shows there are several systemic problems that are causing the gender pay gap and the super gap.
Women In Super recommends public policy changes including paying super on the government's paid parental leave, free childcare, and increasing the LISTO benefit.
See all the recommendations
At Australian Retirement Trust, we’re committed to supporting all of our members to reach their retirement goals.
We partner with Make Super Fair, which advocates for the government to improve economic security for women in super and retirement.
Join the conversation by tagging #MakeSuperFair
Take charge of your super today, by finding out how much you might need to retire, and how we can help you get there.
1. Diversity Council Australia (DCA), KPMG, and Workplace Gender Equality Agency (WGEA), 2022, She’s Price(d)less: The economics of the gender pay gap. Top 3 drivers are listed as gender discrimination, caring for family and lower workforce participation, and type of job/industry.
2. Wilkins, R., Vera-Toscano, E., and Botha, F, 2024, The Household, Income and Labour Dynamics in Australia Survey: Selected Findings from Waves 1 to 21, Melbourne Institute: Applied Economic & Social Research, the University of Melbourne website, accessed November 2024.
3. Financial abuse definition: 1800 RESPECT, National Domestic Family and Sexual Violence Counselling Service, Financial abuse, 2022. Abuse statistics: ABS data also shows that eradicating violence against women would also make the biggest difference to enabling women to be in the workforce without injuries (acquired at home or in the workplace) and without fear of workplace harassment. More than half of all women aged 18 or older have experienced sexual harassment in their lifetime (53% of women compared to 24% of men) (ABS, 2016). 6 times as many women as men are victims of sexual assault as recorded by police, excluding assaults that are not reported (ABS, 2021). Nearly 1 in 5 women (18%) aged 18 or older have experienced sexual violence since the age of 15, compared to 4.7% of men (ABS, 2016).
4. Association of Superannuation Funds Australia (ASFA), March 2024, Research paper: Impact of Menopause on Retirement Outcomes, accessed November 2024.
5. Australian Bureau of Statistics (ABS), October 2022, How Australians use their time 2020–21, ABS website, accessed November 2024.
6. Average working hours: ABS, December 2022, Labour Force, Australia, Detailed. Percentage of women in the workforce: ABS, January 2023, Labour Force, Australia.
7. ABS, May 2024, Retirement and Retirement Intentions Australia 2022–23, ABS website, accessed November 2024.
8. ABS, November 2023, Average weekly earnings, Australia, ABS website, accessed November 2024.
9. Australian Taxation Office (ATO), June 2023, Taxation statistics 2020–21, Snapshot Table 5, Chart 12, Median super balance by age and sex, ATO website, accessed November 2024.
