Salty Dingo
Women in NSW retire with 26% less super than men
Source: ASFA, An update on superannuation account balances, 2025
Why this happens
The super gap is driven by:
- the gender pay gap
- time out of the workforce for caring responsibilities
- lower lifetime earnings.
These factors can reduce your super balance and affect your financial security in retirement.
Many people only check their super when it feels urgent. This can mean you miss important decisions.
Here are 3 actions women can take now to improve their retirement savings
- Log into your super account and check your existing balance.
- Use a superannuation calculator to project your projected retirement savings based off your existing account balance, contributions and investment choice.
- Check your projected retirement savings against the ASFA Retirement Standard, which estimates how much money you'll need in retirement, depending on your lifestyle.
Your super investment strategy can be adapted to your age and proximity to retirement. Younger individuals may take on higher-risk, growth-oriented assets to maximise long-term returns, while older individuals may shift to lower-risk, defensive assets closer to retirement. It’s important to consider your risk tolerance, timeframes, fees and performance before making investment decisions.
Salary sacrificing, especially into superannuation, is one option available to women to offset the gender pay gap, recover time out of the workforce for unpaid care and reduce taxable income. Redirecting pre-tax dollars into superannuation helps counteract these career breaks by taking advantage of compounding interest over time. It may also lower your current tax bill.
Remember, your immediate take-home pay on each payday will decrease. It is important to map out your budget to ensure you can comfortably cover daily living expenses and mortgages.
Speak to a financial advisor if you want more tailored financial advice
Many super funds offer basic, phone-based or limited advice about your super account, insurance inside the fund, or contribution strategies. This is usually covered by your standard administration fees and costs you nothing extra.
If you need a detailed financial plan, your fund can connect you with a qualified financial advisor. This typically isn't covered by standard membership fees, though costs can often be deducted directly from your super balance.
Many funds maintain panels of vetted, accredited external partners that they can refer you to for full, holistic financial planning.
A partner (married or de facto) can make an after-tax contribution directly to the super account of the partner on parental leave. On top of boosting your super balance, the contributing partner may be eligible to claim a tax offset.
Contribution splitting is also an option. This is when your partner (married or de facto) pays some of their before-tax super contributions into your account to keep your super growing.
Disclaimer
Information is general in nature and is not personal financial advice. Consider your circumstances and seek independent advice if needed.