How women can take charge of their financial wellbeing
28 January 2025
5
min read
When you think about money, do you see yourself sitting on a monster? Let's explore the power of taking charge today.
In Australia, women still earn less than men. Most women also retire with less money in their super.
But understanding why that happens and what you can do about it can help you plan to improve your financial wellbeing. It can also help you feel more confident and secure in your financial future. Take charge now
What is the gender pay gap?
The gender pay gap is the difference between average earnings between men and women in their areas of work or industries. Usually, it means women are earning less than men. In 2024, Australia’s national gender pay gap was 11.5%.1 Australian women earned 88.5 cents for every $1 a man earned. That means women working full time made $1,782.80 weekly, while men made $2,014.30. That’s $231.50 less each week, and $12,038 less over a year.2
Why does the pay gap get worse?
The gap often starts early in a woman’s career and widens over time. It starts straight after graduation, when full-time starting salaries average $73,100 for men and $70,000 for women.3
The gap gets bigger after women have children. Many mothers face the ‘motherhood penalty’. In the first 5 years after having a baby, women’s salaries drop by 55%. Men’s earnings stay the same.4
What is the gender super gap?
The pay gap doesn’t just affect women’s take-home pay. Because super is based on a percentage of earnings, women’s super balances are generally lower, too. Nearing retirement, women have about 25% less in their super than men.5 For example, women in their 60s have around $153,000 in super on average. Men in the same age group have $205,000.6
Why does this happen?
- Women earn less due to the pay gap.
- Women often work in lower-paying jobs.
- Women are more likely to take time off work to raise children, which means they miss out on employer super contributions.
It’s never too late to take control of your finances. Small steps now can help you build more financial independence in the future. It can also help make sure you have a plan for your life after paid work.
5 steps to awaken your future
1. Consolidate your super
Combining all your super accounts into one could help you end up with more money for retirement. That’s because you only pay one set of fees and insurance premiums.
Before you combine accounts, check if you’ll lose benefits like insurance or pension options, or if there are any fee or tax implications.
2. Look for lost super
Australians have billions of dollars in lost and unclaimed super. It could be either with the ATO or sitting in an old super account you’ve lost track of. Find and combine your lost super in minutes and get it working harder for you.
3. Start salary sacrificing
Salary sacrificing is when you add more money to your super from your pre-tax income. The earlier you start, the bigger the difference it can make when you retire. It might also reduce the amount of tax you pay.
Here’s how it works:
- Your contributions reduce your taxable income. This can lower your tax bill.
- You grow your super while keeping most of your take-home pay.
- If you earn more than $45,000, you’re more likely to pay less tax on the money that goes into super than you would if it stayed in your take-home pay.
- Just remember there’s a cap on how much you can add to your super each year.
4. Make extra contributions
You can put extra money into your super from your take-home pay. Even small amounts from your after-tax income, added regularly, can grow over time.
You might also be able to claim a tax deduction for these contributions. Just like salary sacrifice there’s a limit on the extra amount you can add to your super every year.
5. Review your investments
We help your super grow by investing it. You can either leave it to us to invest for you, or you can choose where to invest it. Your investment choices can make a big difference to how much you end up with in retirement. So it’s important you regularly review your investments to make sure they’re still right for you.
Reviewing your investments every few years can help keep your savings on track.
Get financial advice
Get the most out of your super and be confident you’re making informed decisions about your retirement. Speak to your adviser, alternatively, find out more about our financial advice options.
1. Gender indicators | Australian Bureau of Statistics
2. Workplace Gender Equality Agency, The ABS data gender pay gap, at wgea.gov.au
3. Australian Government, May 2024, 2023 Graduate Outcomes Survey, Quality Indicators for Learning and Teaching at qilt.edu.au
4. E Bahar, N Bradshaw, N Deutscher, M Montaigne, October 2022, Children and the gender earnings gap, Treasury Round Up October 2022, at treasury.gov.au
5. ASFA urges action to close the retirement savings gender gap - ASFA The Voice of Superannuation since 1962
6. Australian Taxation Office (ATO), June 2023, Taxation statistics 2020–21, Snapshot Table 5, Chart 12, Median super balance by age and sex, 60-64 years category, ATO website.