General news

We’ve all heard the shocking statistics about women today retiring, on average, with 25% less super than men. Disturbingly, women are about 10% more likely to have no super at all. 

We often attribute these imbalances to the fact that women are more likely to take time out of the workforce in the early stages of their careers for child-rearing. 

But a new report by the Super Members Council has shone a spotlight on other common factors, many occurring later in life, that contribute to the gender super gap. 

In particular, the report found that women aged 55 – 64 are 1.5 times more likely than men to be forced into early retirement. That means less super overall, as well as the need to make one’s super last longer. 

According to the report, separation, unpaid caregiving for older relatives, family violence, and health issues, including menopause, are all issues that make it significantly more likely that women will be forced into early retirement or part-time work. 

An impossible choice 

FSU member Kate Fitzpatrick’s personal story demonstrates why fixing super as it pertains only to parental leave (although still vital) isn’t enough to address other societal factors contributing to the problem. 

“My mother, who has a disability, lives with me, and I have four girls, two of them with special needs,” Kate explained. 

“Between myself and my girls, I have six regular appointments each fortnight just to maintain our health, then on top of that we have GP appointments for referrals and specialist appointments.” 

Due to her mother’s breast cancer as well as her caring responsibilities, Kate has put off booking her own breast check for two years. 

“We’ve just had flu season, so now I don’t have any personal leave left.  

“If I had access to reproductive leave now, I wouldn’t be trying to figure out when I could squeeze in another specialist appointment and balance it with taking annual leave to rest and recharge for my own sake.” 

Kate, who works at Australian Retirement Trust, said it’s the kind of practical reform that would make a huge difference to her life, not only right now, but later in retirement. 

And while Kate’s personal situation has fortunately not prevented her from working full time, many other women facing similar caring responsibilities are forced to reduce their working hours. 

According to the report: 

The role of super funds 

The FSU believes that super funds in particular should lead the way when it comes to practical solutions to fixing the gender super gap. 

Kate agrees, adding, “Many of these super funds are so big and have an influential voice, so they can really push for legislative changes. 

“If super funds were to throw their weight behind reproductive leave, for example, that could make a difference to us getting it across the line and having it legislated for everyone.” 

Building on reforms of the past 

Fixing the super and gender pay gap may seem like a daunting and mammoth task, especially when the gap is caused by so many entrenched societal factors.  

But as past reforms show, meaningful change is possible. 

“At the age of 30, I only had $2000 in my super,” said Kate. 

“That’s not because I hadn’t worked, but because I worked numerous casual jobs. 

“At the time, you had to earn a minimum amount of money to get paid super, so while I was working full-time hours, individually those jobs didn’t hit the threshold, so I didn’t get paid super.” 

It was a flaw in the system that disproportionately affected women, who are more likely to be employed in part-time or casual work across more than one job. 

More recent reforms introduced by the Federal Government, thanks in large part to unions pushing for change, include the introduction of paid domestic violence leave for all Australians, super paid on Commonwealth Paid Parental Leave (PPL), and increases to the PPL scheme. 

As recently as mid-October, the government announced plans to boost the low-income super tax offset by lifting the threshold to $45,000 a year – a change that could see some people retire with up to $15,000 more. 

While the report found that the gender super gap will “eventually start to fall” under current policy settings, women may continue to fall behind without further reforms. 

It made numerous recommendations to avoid this scenario, including: 

You can read the full report here. 

Minister for Women and Finance Katy Gallagher said the Federal Government understood that more needed to be done to close the super pay gap.  

“This report shows that issues around pay, safety, who cares for kids, and respect in the workplace are deeply connected,” said Ms Gallagher. 

“And if we’re serious about closing the retirement income gap for women, we have to tackle all of them together at the same time.” 

The FSU will continue to advocate for further reforms that make a tangible difference for women, including: 

FSU members will be meeting politicians in Canberra next week to advocate for paid reproductive health leave for all working Australians, as part of the union movement’s ‘It’s for every body’ campaign. 

You can also read more about the FSU’s gender equity campaign here.