Concerns Over Retirement Poverty for Australian Women

Millions of Australians may face retirement below the poverty line unless more decisive actions are implemented.

A recent report from the Supermember Council’s Impact Economics and Policy reveals that various life events, such as separation, taking care of older family members, and experiencing domestic violence, significantly hinder women’s superannuation balances.

On average, Australian women retire with about $95,000 less than their male counterparts when it comes to retirement pensions. Misha Schubert, the CEO of the Supermember Council, emphasizes that this report is a crucial alert for policymakers.

“Australia has made strides in recent years toward addressing issues like wage gaps and labor force participation, but this study underscores the urgent need for more ambitious reforms to ensure our retirement systems are effective for women, especially those with low incomes,” Schubert stated.

The findings indicate that women’s financial situations at retirement can also be shaped by significant life events encountered during their careers.

For instance, single older women and widows are more likely to experience poverty. In contrast, single older men do not face such heightened risks. Moreover, older women who have gone through divorce or separation from partners tend to struggle more financially.

Women’s caregiving responsibilities add to the challenge, as they are nearly 1.5 times more likely than men to take care of older relatives, which can impact their retirement savings.

The Supermember Council insists that substantial reforms are necessary to bridge the retirement gap between men and women. The Albanese government has initiated some changes, such as an additional 12% on retirement pension payments for parents accessing government-funded paid parental leave beginning July 1, 2025.

While this represents a step forward, the SMC argues that further action is needed, including:

• Abolishing the low-income super tax offset (LISTO) to assist women in building their superannuation balances
• Closing gender loopholes in superannuation, including payday super reforms and ensuring all workers, like nannies and caregivers, receive super contributions
• Removing barriers that prevent women from working, such as improving access to childcare and elder care
• Facilitating fairer super splits in divorce
• Increasing Commonwealth Rent Assistance
• Simplifying superannuation and age pension plans

“While recent reforms are a good start, we need a more extensive and courageous approach,” Schubert concluded. “Failing to act swiftly puts Australia’s lowest-paid female generation at risk of poverty during their retirement years.”