How women can take control of their financial wellbeing

Taking control of your personal finances may help your financial wellbeing.

Women in Australia on average still earn less and retire with less super than men. But understanding gender differences in pay and super, and what you may be able to do about it, can help you plan to improve your financial wellbeing and help you feel confident about your money today and for your future.

Gender pay gap

Australia’s national gender pay gap in 2023 was 13%.¹ This means women in Australia earn, on average, 87 cents for every $1 earned by a man.

So, women working full-time in May 2023 on average earned a base salary of $1,686 per week, while men working full-time earned $1,938.30. The figures mean women earn $252.30 on average each week less than men, which adds up to $13,119.60 over a year.²

How the gender pay gap can get wider

The gender pay gap kicks in early in women’s working life and can get wider as life unfolds.

The gap starts immediately after graduation, where full-time starting salaries average $69,000 for men and $67,000 for women.³

Then, when women have children, the pay gap can widen through what is known as the “motherhood penalty”.

Women experience a 55% drop in earnings in the first five years after having a baby. Men's earnings remain unchanged.⁴

When it comes to unpaid work, women also carry the heavier load.

Women of all ages spend nine hours a week more than men on unpaid work and care. Even when women are the primary breadwinner, they do five hours a week more unpaid work and care than men.⁵

Gender super gap

Women nearing retirement have almost $50,000 less than men and women at all ages have about a quarter less super than men.⁶

The gender rift means that the median super balance for a woman in her early 60s is $159,600, compared to the male median of $210,800.

Women may fall behind in super for reasons including:

• the gender pay gap
• more women than men in lower paid jobs
• women taking time out of paid work to raise a family, so missing out on employer contributions to super.

But taking more control of your money at every stage of your life, can help you towards greater financial independence. It can also help make sure you have a plan for your life after paid work.

5 steps you can take now to take charge of your super

1. Consolidate your super

Consolidating your super means moving all your super into one account.

Consolidating your super can be quick and easy and you may save fees as well as your time. That’s because a single account makes your super easier to manage and one super account means one set of fees.

Before you consolidate your super accounts, you should consider if the timing is right and if you will lose access to benefits such as insurance or pension options, or if there are any fee or tax implications.

2. Look for lost super

Australians have billions of dollars in unclaimed super.

Lost super is money which is held on your behalf when your super fund, your employer or the government can't find an account to deposit your super into.

We aim to make it easy for you find your lost super.

3. Salary sacrifice to super

The earlier you can start putting a little more into your super, the bigger the difference it can make by the time you retire. Salary sacrifice is one of the ways to regularly contribute more money to your super.

How salary sacrifice might benefit you:

• Potential to pay less tax – if you earn more than $45,000, you are likely to pay less tax on the money that goes into super than you would if it stayed in your take-home pay.
• Reduce your taxable income – Salary sacrificing from your before-tax salary lowers your taxable income. So, you could pay less tax.
• Grow your retirement savings with less impact to your take-home pay – Any extra contributions you make now can make a big difference to how much you end up with for retirement.

4. Make voluntary contributions

Even small amounts from your after-tax pay each week or month may make a big difference to your savings, and you may be eligible for a tax deduction.

A voluntary after-tax super contribution is money you choose to pay into your super fund from your after-tax income such as your savings. It’s different from salary sacrificing, which happens before your income is taxed.

Be aware that there is a limit to the amount that you can contribute to your super.

5. Review your investments

Choosing the right investment option for you can make a big difference to your retirement lifestyle.

Your investment choices will probably change over time. What’s right for you at age 25 may not be right for you as you get closer to retirement. Take the opportunity to consider the investment options that best suit your circumstances.

Seek financial advice

Get the most out of your super and be confident you are making informed decisions about your retirement.

We have qualified financial advisers⁷ who can help you online or over the phone with simple advice about your account. We include this service in the fees you pay.

We aim to make it easy to get advice by offering:

Online Advice⁷ – Log in to Member Online for our online advice service about your super.

Phone Advice⁷ – Call 1300 360 750 for simple over-the-phone advice about your account.

Your Adviser – We can work with your adviser. If you don’t have one, we may refer you to an accredited external financial adviser.⁸

Book an appointment or find out more about our financial advice options.

1. Media Release, 23 February 2023, National gender pay gap of 13.3% just a fraction of the real cost on women, Workplace Gender Equality Agency at wgea.gov.au
2. Workplace Gender Equality Agency, The ABS data gender pay gap, at wgea.gov.au
3. Australian Government, February 2023, 2022 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. Melbourne Institute, Applied Economic & Social Research, 2019 The Household, Income and Labour Dynamics in Australia (HILDA) Survey, HILDA Statistical Report Waves 1 to 17, at melbourneinstitute.unimelb.edu.au
6. Media Release, 8 March 2023, Gender super gap persists as women miss out, Industry Super Australia at industrysuper.com
7. Employees in the Australian Retirement Trust group provide advice to members and employers as representatives of QInvest Limited (ABN 35 063 511 580, AFSL 238274) that is wholly owned by the Trustee as an asset of Australian Retirement Trust. QInvest Limited is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide at qsuper.qld.gov.au/guides for more information.
8. The Trustee has established a panel of accredited external financial advisers who are not employees of the Australian Retirement Trust group. The Trustee is not responsible for the advice provided by these advisers and does not receive or pay any referral fees. These advisers will explain to you how their advice fees are determined.