It’s one of those numbers that quietly grows in the background — your superannuation balance. But for millions of Australians, that nest egg might not be enough when the time comes. A new report shows a growing divide in retirement savings, and it’s leaving many worried about their financial future.
The $82,000 Superannuation Divide
A recent study by Industry Super Australia (ISA) has revealed a staggering $82,000 gap between the average retirement savings of men and women. The findings highlight how uneven superannuation outcomes remain, despite decades of progress toward closing the gender wealth divide.
The report found that the average man retires with around $270,000 in super, while the average woman retires with just $188,000, reports Yahoo Finance. The reasons are complex but familiar — lower lifetime earnings, part-time work, unpaid caregiving, and breaks in employment all play a role in shaping this gap.
For many women, especially single retirees, that shortfall translates to financial insecurity and greater dependence on the Age Pension. Industry groups warn that unless the system evolves, thousands could face poverty in later life despite contributing for decades.
Why the Superannuation Gap Persists
Experts say that while Australia’s superannuation system is among the world’s strongest, it still reflects deep structural inequalities in the workforce. Women are more likely to work in lower-paid sectors and take career breaks for family responsibilities — factors that directly affect super contributions over time.
Compounding the issue is the growing cost of living. Many workers, both men and women, are now dipping into savings or reducing voluntary contributions just to manage day-to-day expenses. The result is slower growth in balances when consistency matters most.
Industry Super Australia has called on the government to take action, including paying super on paid parental leave — a measure that could help narrow the gap significantly over the next generation.
The Broader Retirement Picture
Beyond gender, the study also found that low-income earners and part-time workers continue to fall behind on super savings. Those who rent in retirement face particularly tough challenges, as housing costs eat into limited income.
ISA estimates that by 2030, more than one in four retirees will not have enough super to maintain a modest standard of living without government support.
Preparing for a Fairer Future
Policy experts agree that small changes made now could deliver big benefits later. Extending super to all forms of paid leave, improving financial literacy, and encouraging consistent contributions even during short work breaks are all seen as vital steps.
In the meantime, many Australians are taking matters into their own hands — tracking their accounts, consolidating funds, and seeking advice earlier. Because when it comes to superannuation, the earlier you pay attention, the better your chances of catching up before it’s too late.
