Super balances rise but gender retirement gap remains stubborn

Australian's superannuation balances continued to grow over the 2023-24 financial year, but new data has highlighted a persistent gender retirement gap, particularly among those approaching retirement.

Analysis by the Super Members Council (SMC) of recently released Australian Taxation Office data found median super balances increased 5.5% overall during the year, reflecting the continued strength of Australia's compulsory retirement savings system.

However, the figures also reveal that women aged 60-64 continue to retire with substantially less super than men, prompting renewed calls for further policy reform.

Median balances for men in the pre-retirement age bracket rose 7.4% to $236,100, while women's balances increased 7% to $174,700. As a result, the gender super gap for Australian's aged 60-64 stands at 26%, up from 20.5% in 2016-17.

Nationally, women's median super balances remain 20% lower than men's despite women making additional voluntary contributions at a higher rate than men.

"Super balances are growing, which is great news for millions of Australian's retirement incomes, but women are still retiring tens of thousands of dollars behind men, and that gap must be fixed," SMC chief executive Misha Schubert said.

The disparity remains evident across every state and territory. The gap is narrowest in the ACT, where women's balances are equivalent to 94% of men's, while Western Australia recorded the wildest divide, with women's balances sitting at just 69% of men's.

Schubert welcomed recent reforms aimed at improving retirement outcomes for women, including Payday Super, the introduction of superannuation on paid parental leave and increases to the Low-Income Super Tax Offset.

"Crucial recent reforms like payday super laws, paying super on paid parental leave and boosting support for low-income working people have made big strides forward for women, but this data confirms that we need to fix the remaining gaps in super coverage, so no woman is left behind," she said.

The SMC is calling for additional measures, including extending compulsory super to all workers under 18, improving childcare and aged care access, and reforming superannuation splitting arrangements following divorce.

The council said the Super Guarantee reaching 12% is expected to further boost retirement balances, with a typical 30-year-old projected to retire with an additional $132,000 in super compared to a decade ago.