Everything you need to know about the gender super gap blogEverything you need to know about the gender super gap blog
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Everything you need to know about the gender super gap

Pascale Helyar-MorayPascale Helyar-MorayPascale Helyar-Moray
Aug 22, 2023

The gender super gap in retirement savings in Australia is a growing concern. Women are in a disadvantaged position when it comes to superannuation savings, which is impacting their quality of life in retirement. Many women are living through their golden years in poverty because of the gender pay gap. This article explores how the gender gap affects super savings and suggests actionable steps that women can take to create more financial stability during retirement.

Why is the gender super gap still a problem for many Australians?

Let's delve deeper into the gender gap's impact on retirement savings. Women are more likely to experience career breaks to care for family members. They are also more likely to hold lower-paid and part-time jobs, contributing to lower superannuation balances. In fact, women are still paid less than men for doing the same job. According to Workplace Gender Equality Agency (WGEA), Australia's total remuneration gender pay gap is still stubbornly high at 22.8%. This means that for every $1 on average a man earns, women earn 77.2c. Over the course of a year, that difference adds up to $25,596. It's simply unacceptable. But the problem doesn't end there. Unequal pay leads to unequal retirement savings, too. Women, who typically earn less and take more time off work for caregiving, end up with significantly less superannuation than men. According to WGEA, the median man aged 60-64 has $270,170 in superannuation, while the median woman has $157,049, or about 42% less. Hear more from our founder Pascale Helyar-Moray talk about how Super-Rewards helps bridge Australia’s gender super gap.

How Super-Rewards can help bridge the gender super gap

It's not all doom and gloom, though. There are actionable steps that women can take to alleviate the gap's impact on their financial stability during retirement. Super-Rewards super cashback program was created as an innovative solution to bridge the gender super gap and support everyday Australians in achieving financial security through an activity they already perform – shopping!

What is the Super-Rewards program?

Super-Rewards rewards Australians for shopping at participating retailers by putting money into their nominated superannuation accounts. With over 1000+ participating brands, ranging from major food retailers to fashion outlets and travel providers, you can easily find places to shop and put more into your super with the click of a button. When you shop with a Super-Rewards retailer online or instore, the retailer will pay your cashback rewards into your Super-Rewards account, which we then pay into your super fund. Since its inception in 2019, Super-Rewards has already paid 140k into superannuation funds across Australia and helped thousands of Australians boost their superannuation balance in an easy and fun way.

How does Super-Rewards work?

It's easy! Simply create a free account on the Super-Rewards website and link it to your chosen superannuation fund. Then, make a purchase at one of the many participating retailers online or instore, and once verified, the cashback reward will be visible on your Super-Rewards dashboard. The amount of cashback varies between retailers but can be as high as 15%.

Super-Rewards shoppers know that every dollar earned now is worth so much more in retirement. In the dashboard example below, the present-day value of earned Super-Rewards is on the left. On the right, we see how this amount of $1,330.18 can grow to $12,728.37 over 25 years. *

The Super-Rewards cashback earning compound interest accrued over timeThe Super-Rewards cashback earning compound interest accrued over time

Other steps to plug the super gap

In addition to signing up and shopping with Super-Rewards, women can seek professional financial advice to optimise their superannuation savings by exploring different strategies such as salary sacrificing, using personal contributions, and consolidating super accounts. It's important to take an active role in managing your retirement savings to secure a comfortable lifestyle in your golden years.

Clearly, the gender gap in superannuation savings is still a significant concern affecting the financial stability of women in Australia. Women are more likely to experience career breaks, hold part-time jobs, and earn less than men, leading to lower super balances. However, there are actionable steps women can take to plug the gender super gap, such as using Super-Rewards to help reduce the superannuation shortfall, seeking professional financial advice, and being active in managing your retirement savings. By doing so, you could secure a comfortable lifestyle in your final years, free of financial stress and worry. Sign up to Super-Rewards today and start plugging your own super gap.