Australia’s new 12% superannuation guarantee is set to deliver a significant increase in retirement savings for women, according to new modelling from HESTA. The superannuation fund found that women beginning their careers this year could retire with more than double the savings of those leaving the workforce in 2025.
The analysis highlights the financial impact of the rate increase and recent reforms such as super payments on Commonwealth Paid Parental Leave. These changes, while welcomed by industry experts, are also being framed as the foundation for further efforts to create a fairer retirement system for women and low-income earners.
Modelling Shows Significant Gains for Female Workers
According to HESTA, an average female member starting her career on 1 July 2025 is projected to retire with approximately $712,000 in superannuation savings. This represents a $411,000 increase compared with women retiring this year who have faced lower contribution rates for most of their working lives.
HESTA’s chief executive, Debby Blakey, said the research factored in common career interruptions, such as time out of the workforce to raise children and periods of part-time work. “The increase in the super guarantee to 12% marked another milestone for Australia’s world-class retirement system and has already started to benefit millions of working Australians. This modelling shows its clear value in helping more women retire with dignity into the future,” she said.
Nearly 80% of HESTA’s one million members are women, many of whom work in lower-paid sectors such as aged care and early childhood education. These factors, combined with the historical absence of super on parental leave, have long contributed to a gender gap in retirement savings. The modelling, prepared with Laneway Analytics, illustrates how the new rate and additional reforms could start closing this gap for the next generation of female workers.
Calls for Further Reforms to Improve Fairness
The rise in the super guarantee coincides with the introduction of super payments on Commonwealth Paid Parental Leave, which aims to address an estimated $3 billion shortfall in retirement savings for mothers, according to HESTA. While these steps have been welcomed, the fund argues that further measures are needed to ensure fairness for women and low-income earners.
HESTA has urged policymakers to increase the Low-Income Super Tax Offset (LISTO) threshold to $45,000, lift its payment amount, and extend superannuation to the Commonwealth Carer Payment.
The fund also supports indexing the Work Bonus threshold to allow retirees to work more without reducing their Age Pension entitlement. “These changes should be seen as the foundation for further progress on creating a fairer super system, not the end,” Ms Blakey said.
