As markets react to the latest happenings in our world and global society, it’s a big pill to swallow whilst the cost of living is (still) biting and the Reserve Bank has lifted the official cash rate to 3.85% thanks to sticky inflation at 3.8% for the year to January. Money is a very hot topic right now.
With all the “noise” around us, it’s easy to look at things like Superannuation and think “I’ll get to it later…” or “I’ve got time for that…”. But what’s really happening, is that you’re delaying the greatest gift of all when it comes to your own future – the beauty of compounding (the money, your money makes), and women are more likely to pay a higher price for delaying it.
It’s International Women’s Day month and what better time than now to take the opportunity to discuss why the retirement gap for women exists, why it matters and what you can do about it now.
What is the “super gap” (and why does it hit women harder)?
The “super gap” is the difference between how much super women and men typically retire with.
It doesn’t happen for just one reason — it builds up over time. Women are more likely to take time out of the workforce to care for children or family members, more likely to work part-time at different stages of life, and, on average, still earn less than men.
The Workplace Gender Equality Agency (WGEA) continues to report a meaningful gender pay gap in Australia, and lower pay over time means lower super contributions. Add in career breaks and part-time work, and the gap can become significant by retirement.
Why does this matter right now? In a year where living costs are high and interest rates are still putting pressure on household cash flow, it’s common to pause extra super contributions “just for now”. The risk is that “for now” can easily turn into several years — and that’s when the gap widens further.
“But I’m doing fine” — the gap can still be hiding in plain sight
A lot of capable, high-functioning women are financially responsible and still end up behind on retirement savings.
Here’s what I commonly see:
- Multiple super accounts (fees + insurance duplication that slips under the radar)
- Staying in a default investment option that no longer suits your timeframe
- Not starting additional contributions as soon as possible – i.e. when you start working (even $20 a week can make a difference!)
- Pausing contributions during career breaks and never restarting momentum
- Assuming a partner’s super “counts” without a clear shared plan
The gap isn’t about being bad with money. It’s about systems, interruptions, and time.
The retirement gap is also a lifestyle gap (and ASFA just made it more real)
In their latest Retirement Standard update (February 2026), The Association of Superannuation Funds of Australia (ASFA) estimates that for a comfortable retirement at age 67 (homeowners), you’re looking at around:
- $630,000 for singles
- $730,000 for couples
Those are broad benchmarks with assumptions (including home ownership and drawing down capital), but they’re a useful reality check. When costs rise, the “target” tends to rise too.
2026 changes worth knowing (because they can help close gaps)
Two policy changes are particularly relevant for women:
1) Payday Super (from 1 July 2026)
From 1 July 2026, employers must pay super at the same time as wages (with contributions to reach funds within set timeframes).
This matters because more frequent payments mean you have more money being invested sooner and therefore compounding for longer. Not to mention, more frequent payments can also help reduce missing contributions and improve consistency – especially for people juggling multiple jobs or variable hours.
2) Super on government Paid Parental Leave
If you receive Parental Leave Pay for a child born or adopted from 1 July 2025, the ATO will pay a super contribution on that payment (paid after the end of the financial year, beginning from July 2026).
A simple mid-career check-in (15 minutes, no spreadsheets required)
If you’re in your 30s, 40s, 50s (or restarting after a break), do this once a year.
Step 1: Know your “retirement timeline”
- When do you want work to be a choice?
- Will you stop completely, or gradually reduce?
Even a rough timeline makes every super decision clearer.
Step 2: Compare your balance to a benchmark (without judging yourself)
MoneySmart publishes average super balances by age group (APRA data). It’s not “what you should have” — it’s simply a reference point.
A useful question is: Am I broadly tracking, or am I drifting further away each year?
Step 3: Check your super structure (the “leak” check)
Ask yourself:
- Do I have more than one super account?
- Am I paying duplicate fees/insurance?
- Is my investment option still right for my timeframe?
Step 4: Check your contribution momentum
You don’t need to jump to “maximise everything”. Start with:
- “What’s one realistic contribution upgrade I can sustain for 12 months?”
Small, consistent improvements matter more than big short bursts.
Step 5: Protect the plan (so markets don’t derail you)
2026 has reminded us that markets move and inflation bites.
The goal isn’t to avoid volatility — it’s to have a strategy you can stick with. The most important thing is to devise a plan that doesn’t stress you out.
Practical ways women often close the gap (without burning out)
These are the levers we commonly explore (depending on circumstances):
- Consolidate super (where appropriate) to reduce duplicated fees/insurance
- Review insurance inside super (right cover, not accidental cover)
- Use a “back to work” super reset after parental leave or reduced hours
- Consider contribution strategies (e.g., salary sacrifice or personal deductible contributions) aligned to cashflow and caps
- Spouse strategies where relevant (splitting/contributions) to balance household retirement outcomes
- Pre-retirement modelling so you understand: timing, income, and what “enough” looks like
- Preparing or re-visiting your budget to ensure you understand what you could be doing now and what a realistic cost of living in retirement could be. (Remember!! $40/fn as salary sacrifice for a wage earner paying tax @ 30% is only $28 out of pocket).
And if you’re in State Government / SAPOL-style employment arrangements, it’s especially important to understand what type of scheme you’re in and how contributions and retirement benefits work, because the “default super rules” people read online may not match your situation.
FAQs: Women, super and retirement gaps
How much super should I have at 40 in Australia?
MoneySmart publishes average balances by age as a reference point (based on APRA statistics).
The more useful question is: am I on a path that matches my retirement timeframe and target lifestyle? If you’re behind, it doesn’t mean you’ve failed — it just means you may need a clearer plan for the way forward, you’ll be surprised how a minor tweak can make a large difference.
How much super do I need to retire comfortably in Australia?
ASFA estimates that for a comfortable retirement at age 67 (homeowners), it’s around $630k (single) or $730k (couple), based on assumptions including drawing down capital and receiving a part Age Pension.
Use it as a benchmark, not a rule.
What is the superannuation gender gap in Australia?
The gap is driven by compounding factors like the gender pay gap and time out of the workforce for caring responsibilities. WGEA reports a material gender pay gap, and research cited by WGEA/SMC highlights women retire with substantially less super than men.
How do I catch up on super after maternity leave?
Start simple: check whether your employer contributions have restarted correctly, review whether you have multiple accounts, and consider a sustainable “restart contribution” you can maintain. Also note that super on government Paid Parental Leave applies for eligible Parental Leave Pay from 1 July 2025(paid after year-end starting July 2026).
Should I combine my super accounts?
Many people consolidate to reduce duplicated fees and insurance, but it depends on what you’d be giving up (insurance terms, investment options, etc.). The best approach is to compare funds first and understand the trade-offs.
How does payday super work from 1 July 2026?
From 1 July 2026, employers must pay super at the same time as wages, with timing requirements for when it reaches your fund.
This can improve consistency and make it easier to spot missing contributions sooner.
What happens to super in a separation?
Super is generally treated as property in Australian family law and can be split under an agreement or court order. This is an area where getting advice matters, because the right structure and documentation can affect outcomes and future retirement security.
What is a beneficiary nomination and why should women review it?
A beneficiary nomination is how you tell your fund who should receive your super if you die. It’s especially important to review after life events like marriage, separation, children, or the loss of a loved one—because outdated nominations can create stress and delays for families.
Can I retire if I don’t have much super?
Possibly — but it depends on your spending needs, whether you own your home, other assets, and whether you may be eligible for government support. ASFA notes that even a “modest” retirement benchmark is much lower than the “comfortable” benchmark, but assumptions matter.
What should women in their 50s focus on for retirement planning?
Your 50s are often about clarity and structure: understanding retirement timing, contribution strategy, investment risk level, and how your income will work in retirement. It’s also a key decade for getting estate intentions and beneficiary nominations aligned.
A closing note from me
International Women’s Day 2026 carries the theme “Rights. Justice. Action. For ALL Women and Girls” — and for many women, financial security is a huge part of that.
Understanding your super and retirement position empowers you with choice.
If you’d like help mapping out a practical plan—especially around super strategies, pre-retirement modelling, investments, inheritance planning, or State Government benefits—Pride Advice can help you build clarity and confidence.
Disclaimer: This article is general in nature and doesn’t take into account your objectives, financial situation, or needs. Consider whether it’s appropriate for you and seek personal advice before acting.