Australia’s retirement crisis has reached alarming levels as women now retire with $95,000 less superannuation than their male counterparts. This stark gender disparity represents a growing emergency for the nation’s ageing population, with recent research from the Super Members Council (SMC) warning of a looming poverty crisis for older women unless urgent action is taken.
What is the retirement crisis exactly? It’s a multifaceted problem where nearly 60 per cent of older female renters already live below the poverty line. Furthermore, women today retire with 25 per cent less super than men, while those aged 60 to 64 have median balances $51,000 lower than men in the same age bracket. The pension crisis particularly affects women who are divorced or separated, as they are most likely to experience persistent hardship.
Indeed, the situation is compounded by the fact that women are almost 1.5 times more likely than men to be forced into early retirement between the ages of 55 and 64. This premature exit from the workforce, coupled with career interruptions and lower lifetime earnings, consequently deepens the retirement savings gap. Is there a retirement crisis? The evidence indeed suggests so, with experts now calling for comprehensive reforms to address this growing national challenge.
Women’s Retirement Amount vs. Men’s
New research reveals the superannuation gap between men and women in Australia has reached alarming proportions. According to comprehensive data, women retire with approximately half the superannuation of men. In absolute terms, the average retirement balances at age 64 were AUD 447,244.93 for men compared to merely AUD 211,236.12 for women, representing a gender retirement superannuation gap of 52.8%.
This disparity varies across different studies and age groups. According to one study, women in the same age range could only expect to retire with AUD 240,127.92 in superannuation savings as of 2015–16, whereas males in the same age range could expect to retire with an average of AUD 413,912.95. Additionally, the median superannuation balance for men aged 60-64 years is AUD 312,077.61, compared to AUD 224,608.67 for women, representing a 28 per cent gap.
The retirement crisis in Australia is exacerbated by the fact that women generally live longer, yet have significantly less saved for these additional years. Moreover, women often retire earlier than men—on average 2.4 years sooner—further stretching their already limited resources. As a result, about 25 per cent of women aged 60 or older are living in poverty, compared to 21 per cent of men. By age 80, over a third of women—36 per cent—are living below the poverty line.
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Life Events Slash Women’s Retirement Savings
Several critical life events throughout women’s careers directly contribute to the retirement crisis in Australia. Career breaks for childbirth and child-rearing responsibilities dramatically reduce women’s superannuation accumulation, with many Australian mothers spending an average of six years out of the paid workforce caring for children. These career interruptions result in women losing approximately $160,000 in retirement savings.
The impact of divorce is especially severe. Women who separate from their partners between the ages of 45 and 64 experience an immediate 42% drop in household income—nearly twice the reduction men face. This financial shock often never fully recovers before retirement.
Part-time work arrangements likewise diminish retirement prospects. Roughly 43% of employed women work part-time, in contrast to only 16% of men. This work pattern, often chosen due to caring responsibilities, translates to lower lifetime earnings and subsequently reduced superannuation contributions.
The combination of lower wages throughout working life—women earn approximately 14% less than men in comparable roles—alongside career disruptions creates a compounding effect. Each interruption not only represents lost immediate contributions but also sacrifices potential investment growth over the course of decades.
Ultimately, these collective disadvantages throughout working life manifest in the stark superannuation gap facing Australian women at retirement, highlighting how structural inequalities in work patterns directly shape retirement outcomes.
Government Introduces Reforms, but Experts Call for More
The Australian government has introduced several key reforms to address the retirement crisis facing women. From July 1, 2025, parents accessing government-funded paid parental leave will receive an additional 12% superannuation contribution, paid directly into their nominated super fund. This reform, which applies to babies born or adopted from that date, aims to narrow the gender gap by approximately 25%.
Meanwhile, the government is expanding the Paid Parental Leave scheme from 22 weeks currently to 26 weeks by July 2026, with increased flexibility for families sharing care responsibilities.
Nevertheless, experts maintain these measures represent only initial steps toward solving the broader retirement crisis. The Super Members Council has called for more comprehensive reforms, including:
- Unfreezing the Low Income Super Tax Offset (LISTO), which has remained unchanged for 13 years
- Extending superannuation payments to Carer Payment recipients
- Implementing fairer superannuation splits during divorce
Throughout 2024, approximately 1.2 million lower-income workers—60% of them women—missed out on an estimated AUD 764.50 million in retirement savings due to the LISTO freeze. For individuals providing unpaid care, the financial impact is even more severe, with primary carers losing an average of AUD 267,573.29 in superannuation.
Despite recent reforms, SMC CEO Misha Schubert emphasised that “an even bigger and bolder approach is needed” to prevent generations of Australia’s lowest-paid women from facing poverty in retirement.
Conclusion – Retirement Crisis
The retirement crisis facing Australian women represents a systemic failure demanding urgent attention. Women currently retire with approximately 40% less superannuation than men, creating a stark financial disparity that grows more pronounced with age. This gap stems from multiple factors working in concert against women’s financial security. Career interruptions for child-rearing, part-time work arrangements, lower lifetime earnings, and the devastating impact of divorce collectively erode women’s capacity to build adequate retirement funds.
Despite recent government reforms, such as superannuation contributions during parental leave and expanded leave schemes, these measures address only part of a much larger problem. Experts rightfully point out that these steps, though significant, fall short of what Australian women truly need to achieve retirement security. The consequences remain severe – by age 80, over a third of women live below the poverty line, struggling through years they should spend in dignity and comfort.
Additionally, the freeze on the Low Income Super Tax Offset particularly harms women, who comprise 60% of affected workers. This policy oversight, combined with the lack of superannuation for carers, perpetuates the cycle of disadvantage. Women often sacrifice their financial future while fulfilling vital caregiving roles that benefit society, but they receive inadequate economic recognition.
The path forward requires bold, structural change rather than incremental adjustments. Australian policymakers must acknowledge this crisis as a gender equality issue with profound economic implications. Unless comprehensive reforms address the underlying causes of superannuation disparity, generations of women face the prospect of retiring into poverty after lifetimes of contribution to their families and communities.
Though initial steps have begun, Australia stands at a crossroads. The nation must decide whether to accept a future where women’s retirement poverty becomes increasingly commonplace or commit to transformative policies that ensure all Australians can age with financial security and dignity, regardless of gender.
Why do women in Australia have less superannuation than men?
Women typically have lower superannuation balances due to several factors, including more part-time work, employment in lower-paid industries, lower hourly pay rates, and less time in the paid workforce due to caregiving responsibilities.
How significant is the superannuation gap between men and women in Australia?
The superannuation gap is substantial, with women retiring with approximately 40% less in savings than men. On average, this translates to about AUD 95,000 less in retirement savings for women compared to their male counterparts.
What are some life events that impact women’s retirement savings?
Key life events that affect women’s retirement savings include career breaks for childbirth and child-rearing, divorce or separation, part-time work arrangements, and unpaid caregiving responsibilities. These events can significantly reduce superannuation accumulation over time.