The gender gap in retirement savings
There is a large gap between the superannuation savings of Australian men and women. Because the current superannuation system is linked to paid work, it overwhelmingly disadvantages women who are more likely to move in and out of paid work to care for family members.
Women continue to earn less than men and are more likely to be engaged in casual and part-time work, which are also contributing factors to the gender gap in retirement savings.
Right now, many women are living their final years in poverty. If we don’t act, another generation of women will face similar prospects.
- Women have significantly less money saved for their retirement – half of all women aged 45 to 59 have $8,000 or less in their superannuation funds, compared to $31,000 for men.1
- Currently, the average superannuation payout for women is a third of the payout for men - $37,000 compared with $110, 000.2
- In Australia, women working full-time today earn 16 per cent less than men.3
What is Commissioner Broderick’s plan for reducing the gender gap in retirement savings?
Commissioner Broderick will work with experts to investigate the factors contributing to the gender gap in retirement savings and inform solutions for increasing women’s economic independence over their lifetime.
Australian Human Rights Commission work
Commissioner Broderick is meeting with various experts and community stakeholders in this area to help the Commission develop a project plan. This project will begin in early 2009.
- Accumulating poverty? Women’s experiences of inequality over the lifecycle (15 September 2009)
- Australia's Future Tax System (Retirement Income System) - submission to the Review Panel on Australia's Future Tax System (27 February 2009)
- Listening Tour Community Report. (July 2008)
- It's About Time: Women, Men, Work & Family: A report on balancing work and family responsibilities in Australia (March 2007)
- Striking the Balance: Women, Men, Work and family : A discussion paper on balancing work and family responsibilities in Australia (June 2005)
Related links
- Australian Government Financial Literacy Foundation – Women Understanding Money – http://www.understandingmoney.gov.au/Content/consumer/Publications/womensreport.aspx
- Australian Government Office for Women – Women Understanding Money fact sheets – http://www.ofw.facsia.gov.au/publications/understanding_money.htm
- Women’s experiences of paid work and planning for retirement (Women’s Health Australia study) - http://www.ofw.facsia.gov.au/publications/experiences_planning/Womens_experiences_of_paid_work_final_report_(+survey).pdf
- Australian Government Office for Women - Women and Superannuation – taking control of your future
brochure - http://www.ofw.facsia.gov.au/downloads/pdfs/women_and_super.pdf
[1] Simon Kelly, 'Entering Retirement: the Financial Aspects' (Paper presented at the Communicating the Gendered Impact of Economic Policies: The Case of Women's Retirement Incomes, Perth, 12-13 December 2006).
[2] Ross Clare, 'Are retirement savings on track?' (The Association of Superannuation Funds of Australia Limited 2007).
[3] Australian Bureau of Statistics, 'Average Weekly Earnings, Australia, February 2008, Cat no. 6302.0' (2007).
