Super balances see persistent gender rift

The median superannuation balance of a female in her early sixties nearing retirement is down around $50,000 compared to that of a male in the same age range, according to new research by Industry Super Australia (ISA).

The median female super balance for those aged 60 to 64 stood at $159,600 compared to the male median of $210,800, while individuals aged 55 to 59 saw the highest gap of 36 per cent from $125,200 to $195,000.

While it came as no surprise that female super trailed behind in all Australian states and territories, Western Australia recorded the largest gap where the average working woman has 34 per cent less super than her male counterpart ($45,500 compared to $69,300). The Australian Capital Territory saw both the highest super balances ($72,100 for women and $84,900 for men) as well as the lowest percentage gap (15 per cent).

“It is time the government bridged the gender super gap. It’s not acceptable that women are continuing to retire with balances persistently lower than what they need for an adequate retirement,” Industry Super Australia Advocacy Director, Georgia Brumby, said.

“The first step in making super fairer is to pay super on parental leave. It is a glaring inequity that leads to millions of mums being worse off retirement.

“Young and lower paid women are bearing the brunt of the unpaid super scourge – those least able to afford it. Cracking down on unpaid super will ensure these women get the early contributions they need for a more financially secure future.”

The ISA analysis also found unpaid super was a key driver of the growing gender super gap, with 20 per cent of women affected in 2019 to 2020 missing a total of $1.3 billion in employer contributions. In the last seven years, women have not been paid $10.8 billion in super, leaving them to retire with more than $40,000 in missed super savings.