How to switch girl power to super power

This week sees Australia mark Equal Pay Day. It's far from a celebration - more of an ongoing recognition that women need to work, on average, 50 extra days each year just to earn the same as men.

That's based on the difference between the full-time base pay of women compared to men - known as the gender pay gap.

As a guide, men working full-time in the private sector earn an average of $2,070 weekly (this excludes overtime). The average for women is $1,778 - a gap of $292.

Why do we still have a gap?

The Workplace Gender Equality Agency (WGEA) says the gender pay gap is driven by three main factors:

• gender segregation across jobs and industries
• workplace discrimination
• the simple reality that the burden of caring for homes and families still falls chiefly on women.

If you're not convinced about that last factor, research confirms women spend about twice as much time each week doing housework, caring for children, and supporting elderly relatives compared to men.

According to the Melbourne Institute of Applied Economic and Social Research, which published the research, the disproportionately high involvement of women in unpaid work limits their career progression, contributes to the gender pay gap, and just as worrying, drives lower retirement incomes.

It means the gender pay gap isn't just a 'today' problem. It can continue to impact women's financial wellbeing long after leaving the workforce.

Lower pay plus career gaps drive super gap

Our super system rewards higher income earners with higher employer-paid super contributions. So, the gender pay gap has the potential to put women behind the fiscal eight ball from an early stage.

The thing is, men and women don't start out with unequal super balances.

According to industry body ASFA, the super savings of men and women are relatively similar in the early working years.

It's from age 30 that the super gap starts to widen. But it really ramps up from our mid-40s, and it's not just about pay differences.

Research by Aware Super shows middle-aged women experience significant life changes (just ask any woman aged 45-plus).

At this stage, women may be called on to care for children as well as elderly parents (the so-called 'sandwich generation') while also experiencing what can be debilitating symptoms of perimenopause and menopause.

Juggling these issues can make it near-impossible for some women to remain in the workforce.

The upshot, according to Aware Super, is that Australian women aged 45-65 can find themselves, on average, $175,000 worse off in retirement.

Steve Hill, Aware Super's group executive, people and workplace, says that while two thirds of Aware Super's members are female, this is an issue that impacts half Australia's population.

What can women do to ensure a comfortable retirement? As it turns out, plenty.

Have conversations at work

WGEA chief executive, Mary Wooldridge, says this year's Equal Pay Day is a chance to, "start a conversation about the gender pay gap at your workplace and the plans to reduce it."

It's never easy to break the ice on these discussions. If you need back-up, the WGEA website is packed with data and interactive tools that reveal the gender pay gap for various occupations and industries.

Harness your personal super power

Rose Kerlin, AustralianSuper's chief member officer, says there are positive signs of growing financial engagement among Australian women, which has long term benefits for their super savings.

AustralianSuper reports that in 2024-25, close to 200,000 of the super fund's female members made voluntary super contributions - a 10% uptick on the previous year.

More than 4000 women received super contributions from their spouse, a 15% increase on the year prior.

Low and middle income earning women may also be eligible for a government-funded co-contribution worth up to $500 annually.

Policy changes support caregiving

Government policy is also evolving. Since July 1, super is being paid on government-funded Paid Parental Leave.

This will help women maintain their super balances, even when taking time off work to raise kids.

AustralianSuper has crunched the numbers. It says that under the new Paid Parental Leave changes, a woman who takes a 5-year career break from age 30 to care for two children and then returns to work part-time for five years before re-commencing full-time work, would retire with around $15,000 more.

"Policies like super on Paid Parental Leave are crucial because they acknowledge the real economic impact of caregiving," says Kerlin.

There's still more to be done

Employers also need to recognise that women who have taken career breaks to care for loved ones, or simply to deal with menopause, can be a valuable resource for businesses.

Simone Mears, managing director of profusion, a financial services recruitment sector specialist, says over 60% of the firm's candidate pool includes women over the age of 45.

She adds that among women aged 45-plus with a three- or six-month gap in their CV, the career break is "primarily attributable to time away for caring duties of relatives, including elderly parents."

At a time when many businesses are struggling to attract skilled staff, employers who welcome older workers, especially women, may be rewarded with loyal team members.

It could also help close the super gap.

According to Aware Super, a 55-year-old woman who is able to stay in the workforce part-time for an extra five years would have 23% more in her super. For ten years, and her super could jump by 46%.

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