Why women still retire with less: understanding the gender super gap

The gender pay gap is well known, and rightly so. But there’s another gap that gets much less attention: the gender super gap.

According to the Workplace Gender Equality Agency (WGEA), women retire with a whopping 25% less super than men on average.

And while the gender pay gap has a lot to do with it, it’s not the only reason womens’ superannuation balances are lower. So what else is driving this disparity?

What’s causing the gender super gap?

Founder of Grow My Money and author of Rich Woman, Poor Woman, Pascale Helyar-Moray has spent over ten years helping women understand their super. She breaks it down into three main issues:

The gender pay gap 

WGEA data shows women earn around 21.8% less than men on average. Lower pay means lower employer contributions, and it also makes it harder to find extra money for voluntary contributions. 

This puts women at a disadvantage from day dot.

“Despite progress made on so many other fronts, Australia’s gender pay gap still stands at 22% when bonuses and overtime are taken into account. This means that for every $100 men earn, women earn $78. This naturally has a domino effect on women’s superannuation,” Pascale says.

Career breaks and time out of the workforce

Another driver of the gender super gap is time away from paid work, often for maternity leave. Historically, employers weren’t required to pay super during these times. From July 2025, the government will make up this shortfall thanks to new legislation, but that won’t make up for all those lost years where women have already missed out.

“Let’s say a woman had three children and takes three years out of paid work each time she does; that totals nine years of superannuation she has missed out on,” says Helyar-Moray.

That said, she sees the change as a long-overdue win. “It’s not going to solve all the problems, but it is absolutely a step in the right direction… you have to get a foot in the door to be able to widen it further.”

Part-time and lower-paid roles

Many women take part-time or lower-paid jobs because full-time work becomes unaffordable when childcare costs are factored in, and this in turn reduces super contributions. ABS figures show just under 38% of women aged 15 to 64 aren't in the workforce at all. Those who do work are more likely to do it part-time.

“The cost of two kids in full-time childcare is actually greater than the take-home pay of the average woman working full time,” says Helyar-Moray. “It’s no wonder so many women ‘choose’ to work part-time, although it’s clearly not really a choice.”

How small superannuation gaps become big ones

As you can see, these factors tend to build on each other, and the impact grows over time.

That’s because super builds through compounding, so early contributions matter more than most people realise. Missing even a few years can leave your balance lagging well into retirement. And if that’s not bad enough, women also tend to live longer than men, meaning they need to stretch that smaller balance even further.

“I’ve done workshops where I sit down with women, look at their balances and show them what they'll realistically need when they retire,” says Helyar-Moray. 

“The reactions can be pretty emotional, including shock, panic, sometimes tears. And it’s not because they’ve made bad financial choices. It’s just that nobody ever explained how the system really works.”

What women can do about the super gender gap

Despite some reforms taking place around the edges, the problem is a structural one that will take time to fix. That’s why Heylar-Moray is encouraging women to take matters into their own hands starting now. 

Here are some practical steps women can take right now to improve their super outcomes:

• Voluntary contributions. Even small voluntary contributions, made early and regularly, make a significant difference by retirement.
• Government co-contributions. Low-income earners can benefit from government incentives designed to boost super.
• Cashback programs. Services like Heylar-Moray’s Grow My Money redirect everyday shopping cashback into super, building balances without affecting daily budgets.
• Getting advice. Whether from your fund, a financial advisor, or an online service you trust, having a clear strategy helps.
• See how your fund stacks up. Compare your fund’s performance and fees with others to see if you’re getting good value. Past performance doesn’t guarantee future performance, but it can help you spot funds that consistently deliver value.

“There’s no downside to contributing a little extra during your working years,” Helyar-Moray says. “If you end up with extra super at retirement, that just means more choices.”

Bottom line

Australia’s super system was built around steady, full-time careers, not the stop-start reality many women face. The wholesale structural changes that are necessary to fix the issue could take decades. 

In the meantime, women can try to close the gap where they can, and the rest of us can back policies that make it less of a gap in the first place.

And if you're not sure whether your super fund is doing right by you, it might be time for a closer look and compare some other options.