Why Australian Women Are Retiring With a Quarter Less Than Men, and the Catch-Up Strategies That Actually Work

Here’s a number that should stop you mid-scroll: Australian women aged 60 to 64 are retiring with 26% less superannuation than men. That’s not a typo, and it’s not old news. The gap has actually widened, up from 20.5% less than a decade ago.

I talk to women every week who’ve done everything “right”. They’ve worked hard, saved consistently and made extra contributions when they could. And yet, the numbers still don’t stack up the way they should.

If that sounds familiar, I want you to know it isn’t a personal failing. It’s a structural gap. And the good news is that once you understand where it comes from, there are steps you can take to help close it.

Where the gap actually comes from
The data tells an interesting story. Women are making voluntary super contributions at a higher rate than men, 11.6% compared with 10.0%, and yet they still retire tens of thousands of dollars behind. Median balances for 60 to 64-year-olds are about $236,000 for men and $175,000 for women. At one large industry fund, 17.7% of female members made voluntary contributions last financial year, compared with 10.4% of men.

So this isn’t simply about effort or discipline.

It comes down to structure: time out of the workforce for caregiving, a higher likelihood of part-time or casual work, and a gender pay gap of around 11% nationally. Because compulsory super is tied to income, those differences can compound quietly over decades. Every year spent raising a family, caring for a parent or working reduced hours can mean less money going into super and less time for those contributions to grow.

The gap also varies across the country. Women’s median balances sit around 20% below men’s nationally, from a relatively narrow gap in the ACT, where women’s balances are 94% of men’s, to a much wider one in Western Australia, where they sit at just 69%.

The anxiety is real too. One recent survey found 62% of women fear not having enough for retirement, compared with 49% of men.

Some genuine progress, and why it isn’t enough on its own
There has been real reform. Super is now paid on government Paid Parental Leave from the 2026–27 financial year, helping address a longstanding gap for parents taking time out of paid work. Payday Super is also changing when employers must pay super, while changes to the Low Income Super Tax Offset are due from July 2027.

These reforms can make a meaningful difference, particularly for younger women building their super over the coming decades.

But they don’t undo years of lower contributions for women already in their 40s, 50s and 60s. If you’re in that group, policy changes alone may not be enough to address your position. Understanding the options available to you now matters.

Who feels this most
While this affects many women to some degree, it can land particularly hard on a few groups I see regularly:

• Women returning to the workforce after raising children, who may have missed years of contributions and the compounding growth that would have come with them.
• Divorced women, particularly with couples increasingly separating later in life, when savings built over a marriage may suddenly need to support two households instead of one.
• Widows, who can find themselves managing significant financial decisions independently, often at an already difficult time.
• Women who are financially independent but have never had a plan built around their own timeline, risk profile and goals, particularly where previous financial planning has focused primarily on the household rather than the individual.

If any of that sounds like you, or someone you love, you’re not behind. You’re navigating a system that may not have reflected the realities of your working life. That’s a very different thing.

The catch-up strategies that can help
Superannuation is one area of financial planning where several useful catch-up strategies may be available, depending on your circumstances.

Spouse contributions and contribution splitting. If you’re in a relationship, there are strategies that may help build your super balance. For example, your spouse may be able to make an eligible contribution to your super and potentially qualify for a tax offset. Couples may also be able to split certain concessional contributions between spouses, subject to eligibility requirements. These are different strategies, but both can potentially help address an imbalance in super between partners.

Catch-up concessional contributions. If your total super balance is below the relevant threshold and you meet the eligibility requirements, you may be able to use unused concessional contribution cap amounts from previous years. This can provide an opportunity to increase contributions after periods when contributing more wasn’t possible.

The Low Income Super Tax Offset and government co-contributions. Depending on your income and the type of contributions you make, these government measures may provide an additional boost to your super.

Reviewing how your super is invested. It’s worth checking whether your investment mix remains appropriate for your timeframe, objectives and tolerance for risk. Being positioned too conservatively may limit long-term growth, while taking more investment risk than you’re comfortable with can create challenges of its own.

Insurance and estate planning built around you, not just your household. If you’re managing your finances independently or planning for the possibility that you may outlive your partner, reviewing your personal insurance needs, beneficiaries and estate plan can be an important part of your broader financial strategy.

None of these strategies works in isolation, and what is appropriate will depend on your income, age, super balance, relationship circumstances and goals. That’s the point. A retirement gap this personal calls for a plan that reflects your own circumstances.

A different kind of conversation
At Heard Financial, we don’t wait for a crisis to have this conversation. We believe that the earlier you understand your position, the more time you have to consider your options.

Whether you’re rebuilding after a separation, stepping back into the workforce, planning ahead as a couple or simply want a closer look at your own retirement position, these are conversations I have with clients regularly.

You’ve worked hard for what you have. You deserve a plan that works just as hard for you.

Ready to see where you stand? Get in touch to arrange a free, no-obligation first appointment.