The superannuation gender gap just before retirement is currently 42.7%, or $132,000.
Roy Morgan Research finds that the average superannuation held by women planning to retire in the next twelve months is $177,000 – which is 57.3% of the balance of men at the same stage, who have $309,000 on average.
The super gender gap has shrunk slightly since 2008, when it was 44.76% ($78,000 to $143,000).
“Despite a great deal of publicity being given to this issue over the last decade in an attempt to close the gender gap in superannuation, there has been no real progress. This is evidenced by the fact that it has taken ten years for the female average superannuation for intending retirees to move from 55.2% of the male average to 57.3%,” said Roy Morgan Research.
Norman Morris, Industry Communications Director for Roy Morgan, said: “Despite real gains in employment for women over the last decade, they still lag males in terms of full time and overall employment levels. This has been one of the major reasons that overall female income levels are around 25% lower than males, which obviously in turn leads to lower superannuation contributions and balances when compared to males.”
“The end result of this lower income and interrupted employment being more likely for women, has been that over the last decade they have been unable to close the gap to males and generally show inadequate superannuation for retirement. It is likely to take some considerable time and changes to superannuation conditions for females to achieve an adequate level of superannuation more equivalent to their male counterparts.”
“Obviously retirement funding is not just about superannuation, as Roy Morgan has shown by providing a more holistic understanding of intending retirees. This also looks at other important factors such as the level of other investments, home ownership, debt levels, personal and household incomes, financial attitudes and many other factors that make for improved retirement.”
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By Luke Smith
Sole Purpose Test
16 July 2018