Women make up 47.4% of the paid Australian workforce.
This statistic doesn’t take into account the plethora of unpaid work that falls onto Women every day. Despite their remarkable contributions, women continue to face to a frustrating and disgusting reality when it comes to their retirement savings. Let’s dive into some eye-opening statistics.
The Gender Gap
Australian women retire with $136,000 less in superannuation and earn a staggering $1 million less over their lifetime compared to men. And when considering that women earn 14.1% less than men in full-time positions and 67% of part-time employees are women, the pay gap is compounded and widens even further.
Impact on Retirement Savings
The financial implications are significant. Women earning the median wage accumulate about $393,676 in super, falling short by $151,000 for a “comfortable retirement.” In 95% of all occupations, including those dominated by women, men still earn more on average, which is pretty shocking.
Mothers who take time off work to care for their children, miss out on over $2.8 billion in super at retirement. This highlights the need for equitable policies to support working mothers.
It’s shocking that despite a lifetime of paid and unpaid labour, 34% of single Australian women over 60 live in income poverty (compared to 27% of men). The latest Census data revealed a staggering 31% increase in homelessness among women over 55 over the past five years, the fastest growing demographic of homelessness.
There needs to be major reform and more resources put towards reducing the gender pay gap down from 22.8% (which hasn’t moved in 12 months). As an organisation built on and supporting women, there are some things we can do to try and improve the odds that seem to be forever stacked against half of the population:
Build Savings Early
Seize the power of compounding interest by making voluntary contributions early in your career. Even small contributions can make a big impact over time.
Connect with your super fund for expert advice tailored to your needs. Don’t hesitate to ask questions and seek clarification if something isn’t clear, after all knowledge is power!
Smart Super Choices
Consolidate your super accounts to stay organised and reduce fees. Keeping track of your funds ensures you make the most of your hard-earned money. And if you want to consolidate multiple super accounts or switch to a super fund created for women, check out Verve. This ethically focused super fund is designed for women, men & non-binary folk who believe in the vital mission of closing the super gap. An added bonus is knowing that Verve does not directly invest in fossil fuels or other harmful industries.
Raise Your Voice
Be a part of positive change! Advocate for legislative reforms that benefit all women. We can create a more equitable future for everyone! How can you advocate for legislative reform? Click the button below.find out more
Let’s work together to bridge the gender retirement gap and pave the way for a more secure financial future for all women!