What women need to know about super

Estimated reading time
 5 min

Learn all about

• Superannuation changes for women based on their life stage
• How women can future-proof and boost their super
• Making a plan for the future

Superannuation plays an important role in retirement, helping you feel financially comfortable when you’re no longer working.

The best time to build it up is when you’re young and still in the workforce.

If you’re a woman, however, there’s a strong chance you’ll retire with less super than the men in your life. That’s right, even though women and girls live longer, their superannuation outcomes still fall short.

In fact, when calling for the Australian Government to take action to close the gender super gap, the Association of Superannuation Funds of Australia cites a difference of 25% in the median super balance between men and women.

This gap is due to four main reasons:

1. The gender pay gap: Less pay equals less super.

2. Parental and carer’s leave: According to the Workplace Gender Equality Agency, women account for 88% of those taking primary carer’s leave. Historically, when women have gone on paid parental leave, they have been paid for their time off, but it wasn’t required for workplaces to pay super as well. But times, they are a changin’ - from mid-2025, women on government-paid parental leave will receive super on top of their leave payment.

3. More time out of the workforce: Some women take additional time off work to raise their children or care for aging relatives while still doing a large portion of the unpaid jobs like housework. This time away from paid employment can mean a hit to their super balances.

4. Less hours, less super: More women work in part-time or casual roles, which can mean less super over time. Often this is because they return to work on reduced hours so that they can juggle care responsibilities. A lower income means lower super contributions.

So, how can you grow your super balance while juggling family responsibilities? Can your spouse contribute to your super? What about your investment options? Pull up a chair and discover some of the best superannuation-boosting strategies to future-proof your retirement.

Brain hack: The status quo bias is a human behaviour where we show a preference for the current state of the world. It explains why we often don’t question whether there’s a better way of doing things. Under society’s status quo, it makes sense that women might accept lower pay (and super) as the norm. To flip the script, consider what might improve your situation, like asking for a pay rise, considering your investment options or making super contributions from your partner’s income while you’re away from the workforce.

Your super when you’re young and free

Super might be the last thing on your mind when you’re young. You could be focussing on starting your career, planning a family, or travelling across the globe. And we don’t blame you – those things sound way more fun!

But did you know that a woman’s superannuation starts falling behind when they’re around 25-to-34 years old? The difference might start small but it gradually increases over time.

There are ways you can nip this superannuation gap in the bud and set future-you up for success:

• Consolidate your super accounts: Check if you have more than one super account with the ATO online. If you do, consolidate them, having one super account means you’ll be paying one set of fees, which can help your super flourish. You’ll also have one (larger) sum of money that can grow thanks to the compound interest on a single account.
• Ask for a pay rise: Research suggests that women are less inclined to ask for pay rises than their male counterparts (even when they’ve earned them). If you’ve been working hard in your current role, you deserve to be recognised for it! So now is the time to chat to your boss about a pay rise. Remember, more pay can equal more super! Do your research on a reasonable salary for your industry, role and experience, and put together a case based on your performance and achievements.
• Consider whether to make voluntary contributions when you can: If you get a cash bonus, receive a hefty tax return or even an inheritance, consider putting that extra money towards your super. A little bit can go a long way – so make those post-tax contributions count.

Remember, always do your research to work out what is right for you. Seek independent financial and tax advice and always check the Terms and Conditions, fees and changes and eligibility criteria of super accounts.

Your super when you’re a wonder woman (and mum!)

Taking time off work to start or grow your family can impact your super. During parental leave, your employer might make contributions to your super, but it’s not guaranteed (until mid-2025!). If you step away from the workforce – even just for a short while – or decide not to go back, you’ll have to get savvy about how to boost your super.

• Consider your investment options: Your super fund will probably invest your money in a mixture of assets. See what other investment options are out there to make the most of your super. Remember, every investment carries risk, so it’s a good idea to work out how much risk you’re up for. For example, a high-risk, high-reward investment option could help you get closer to the super balance of men your age, but it could also set you back. It’s important to weigh the risk and consider if you’re comfortable with all the possible outcomes. Always check the T&Cs, fees and charges and eligibility criteria, and seek independent advice to work out what’s right for you and your circumstances.
• Invest elsewhere for passive income: While your super is one type of investment you can make, there are other options to think about too. Chat with your bank about opening a term deposit and watching your wealth grow over time. Or you could speak to a financial advisor about investing in shares. These investments can help you earn a passive income during periods when you might not be paid super. Research the pros and cons of these different investment types!
• Work out if your spouse can make contributions: Your spouse can make voluntary post-tax contributions to your super if you earn a low income or take time off work to raise children. You can also look at splitting your partner’s voluntarily super contributions or boosting payments through salary sacrifice. Salary sacrifice means your partner would get less income with their employer paying additional super on their behalf which also reduces their tax (don’t forget to seek independent tax advice!).

Your super when you’re entering your golden years

At this stage of life, your children might be having children, your mortgage paid off, and retirement could be just around the corner. So how can you give your super an extra boost for a stress-free retirement? Here are some options you could research:

• Create a Transition to Retirement (TTR) strategy: If you enjoy working but want to reduce your hours without a pay cut, consider a TTR strategy. This lets you keep working on your terms. It will mean less super when you decide to finish up work unless you sacrifice some of your salary while you’re transitioning. As always, it’s a good idea to get some financial advice to help you decide if this is the right strategy for you.
• Downsize your home to bulk up your super: If you decide to sell the family home and move to a smaller one, you can add up to $300,000 (per spouse) to your super through downsizer super contributions.
• Carry forward unused concessional caps: Each year, the amount of super you can put into your account has a cap – once you reach it, you can continue to contribute to your super but there will be tax implications you should be aware of. If you don’t meet that cap, you can carry forward the unused amount allowing you to make bigger contributions the following year.

Remember, if the status quo isn’t working for you, it’s time to consider a change. When it comes to the gender super gap, there may be a long way to go, but every change you make now can help get you one step closer to a well-earned, stress-free retirement.