The truth about the gender pay gap

Gender equality remains a long way off in Australia, particularly in terms of financial security in retirement.

As we mark the Workplace Gender Equality Agency's Equal Pay Day today, August 19, it's a reminder that urgent action is needed so that all Australian women can retire on an equal footing.

A lack of financial independence and retirement savings, along with unexpected life events like death and divorce, have resulted in some older women not having the means to retire well.

This highlights the need to address the gender super gap, which significantly impacts women's financial security in retirement.

Equal Pay Day should spark a critical conversation about the gender pay gap and its long-term effects. As of last week, the national gender pay gap stands at 11.5%. While this is an improvement, women on average will now earn $231.50 less per week than men. Over a career, this disparity leads to a substantial difference in superannuation savings.

A 30-year-old man earning the average wage of $2014.30 per week with an average super balance is projected to retire with approximately $893,000 in superannuation. Meanwhile, a woman earning an average wage of $1782.80 per week with an average super balance is expected to retire at age 67 with around $750,000 - leaving a gap of $143,000.

This disparity directly influences the significant financial challenges many women may encounter in retirement.

The gender pay gap is further compounded by time spent out of the workforce for caregiving.

This contributes to women aged 60 to 64 having superannuation balances that are, on average, 23% less than their male counterparts. While guidance and education can help women maximise their finances, systemic change is crucial to protect women's futures.

Employers play a key role in closing this gap. They can make a difference by paying super on parental leave, offering flexible work arrangements and providing information that allows employees to make informed decisions about their super.

Only 14% of men took paid parental leave last year, even though 63% of employers now offer it. We need to normalise equal access to caring and career opportunities for team members and continue supporting gender equality initiatives in the workplace.

Bridging the gender super gap requires all of us to work together to drive change that helps Australian women secure a better financial future.

Taking control of money matters can be empowering. Simple steps like choosing a good-performing super fund, consolidating accounts, contributing extra when possible, and regularly checking your balance can make a significant difference in retirement outcomes.

By starting the conversation today, we can move closer to achieving equality, where every woman has the same opportunity for a secure and dignified retirement as her male counterparts.

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