New data exposes alarming retirement crisis facing Australian women

The retirement gap widens

Millions of Australians are set to retire below the poverty line unless “bold action” is taken, according to new research by Impact Economics and Policy for the Super Members Council.

The report shows that women retire, on average, with $95,000 less than men in their superannuation. This gap has persisted despite progress in addressing gender pay inequality, superannuation reforms, and workforce participation.

Why women retire with less

Life events are one of the biggest reasons for the gender gap in retirement outcomes:

• Separation and divorce – Single, separated and widowed women are most likely to retire into poverty.

• Caregiving responsibilities – Women are 1.5 times more likely than men to leave work early to care for older relatives.

• Persistent poverty – Single older women experience greater hardship compared to single older men.

Super Members Council chief executive Misha Schubert called the findings a “wake-up call” for policymakers.

“This research shines a spotlight on the need for bold reforms to ensure our retirement system truly works for women – especially low-income women.”

The bigger economic impact

The crisis is not just personal – it’s national. If women continue to retire with less super, Australia faces a rise in poverty rates, increased reliance on government pensions, and greater strain on social services.

Experts warn that unless action is taken, the financial insecurity of older women could become one of Australia’s most pressing economic challenges.

Calls for reform

The report urges government to act quickly by considering reforms such as:

• Ensuring superannuation is paid on parental leave.

• Closing gender pay gaps more aggressively.

• Offering tax incentives for low-income earners to boost contributions.

• Providing better protection for women affected by family violence or separation.

Moving forward

While Australia has made strides in addressing financial inequality, the data shows much more needs to be done. Advocates argue that boosting super balances for women is not only a matter of fairness but also crucial for long-term economic stability.

For more insights into economic challenges, read our coverage on the NAB cash rate forecast and the RBA’s billion-dollar renovation blowout.