Women must act now if they want to save their retirement. Here’s how

I’m a woman approaching 50, and I’ve learned a few things the hard way. If I could go back and give my younger self advice – or offer lessons to other women in the workforce – I wouldn’t be talking about skincare, wardrobe or career hacks.

I’d be telling her to take her financial future seriously. Because here’s the thing: by the time you reach my age, the gender pay gap isn’t just an abstract issue or a talking point in a boardroom. It’s the reason so many women over 50 are staring down an inferior retirement compared to men, with fewer options and a lot more stress.

And if you’ve ignored the problem for decades, it’s damn hard to fix.

Women typically have lower super balances than men as they are more likely to take time off work to raise children.Credit: Simon Letch

As we mark International Women’s Day, let me be blunt: the financial security of women approaching retirement today is in crisis. The numbers don’t lie. The average super balance for women aged 55-64 is $246,300, compared to $326,200 for men of the same age, according to the ABS Household Income and Wealth Survey (2019-20).

Nearly two-thirds of women believe they won’t achieve a comfortable retirement, according to the Brighter Super & Investment Trends Report (2024), and they’re not wrong to worry. The average woman expects to fall short of what she needs to live comfortably by about $1500 per month.

With less money comes fear, pessimism, and disengagement from her super. I see it all the time – women who don’t even want to check their balances because they already know the numbers won’t be in their favour. Then, because they don’t look, they don’t do anything to improve it. It’s a dead spiral we need to stop.

The gender pay gap might be real, but you don’t have to let it define your retirement.

We must acknowledge three key problems if we want women to have fairer super balances at retirement – and if we want to fix things for the next generation of women – those who haven’t reached retirement yet. If that’s you – stand back and take notice.

The first is that the gender pay gap is alive and well. In 2025, Australian women are still earning, on average, $28,425 less than men per year. That’s 78¢ for every dollar a man earns. And when you break it down, about one-third of the pay gap comes from incentives, bonuses, and superannuation contributions – which companies are still getting away with not offering fairly.

The second is that women spend fewer years in full-time work. Many of us take on caregiving roles – stepping out of the workforce for months or even years to raise children, and later, to care for ageing relatives.

I know I did – and working part-time or not at all for years has certainly affected my super significantly. What no one tells us is that every time we do, we sacrifice super contributions, career momentum, and financial security.

And thirdly, women leave the workforce earlier too. Brighter Super’s survey says 51 per cent of women retire earlier than expected, often due to health issues or caring responsibilities – compared to 43 per cent of men. That means fewer earning years and more years relying on savings. And all that is done with a lower balance in the first place.

And here’s the real kick in the teeth – we need more money to have a comfortable retirement because we live longer than most men. According to the ABS Census (2020-2022), a 50-year-old today, who lives through 65 will have a mortality-adjusted life expectancy of 89, but for women, it’s 91, or even 95 if part of a couple. That really is several extra years of life we need to fund with passive income or live an inferior lifestyle in retirement.

If you’re a woman who hasn’t yet retired, I don’t want these to be your reasons. I want you to be more aware of the risks, and take control of your financial future today. And there are five easy ways to start.

Check if you’re being paid fairly. Your employer is legally required to pay equal wages for equal work under the Workplace Gender Equality Act (2012). And, it’s not too difficult to expose if they are.

The Workplace Gender Equality Agency (WGEA) takes a census from all employers with over 100 staff to evaluate their gender equity performance. You can visit WGEA’s site here to see for yourself if your employer has a gender pay gap.

If you’re being underpaid, speak up – for yourself and all women struggling with pay inequality. Remember, every missing dollar also means 11.5¢ less in your super.

Get savvy about your super. If you’ve got multiple accounts, you’re paying unnecessary fees and chances are the mess is discouraging you from looking at your super more. Choose one high-performing fund and roll them all in together – your chosen super fund’s advice team will help you if it looks hard to do.

Then, log into your super fund’s app. Check your balance, contributions, fees, and insurance. Play with their retirement calculators to see what you’re on track for – and then make it your mission to improve that number.

Set up a salary sacrifice. Contributing just 1 per cent more of your salary into super could make a massive difference over time. You’ll barely notice it coming out of your pay, but you’ll definitely notice it when you retire.

There are numerous reasons why women – especially older women – are more disadvantaged when it comes to super.Credit: Getty

Or even better, take a look at the concessional contribution cap of $30,000 per year, which allows you to put money into super at just 15 per cent tax. See how close you can get to maximise this each year – it’s one of the smartest tax-effective ways to grow your retirement savings.

Review your investment options. Are you in the default investment option, or one that’s lagging the average 10-year performance of a growth fund in Australia for 2025? If so, it’s time to reassess.

Make an appointment with your fund’s adviser and discuss investment strategies that align with your risk tolerance and life stage. Don’t be intimidated – your fund is there to guide you and will walk you through everything you need to know when you reach out. Tell them I sent you.

Commit to building your financial literacy. If you’re going to live a long life, you need to be just a little financially literate to really enjoy it. Buy a book, sign up for a webinar, or take a basic finance course and overcome your fears of personal finances.

Learn about tax, investing, superannuation, and budgeting – and put that knowledge to work. Because here’s the truth: no one else is going to care about your financial future as much as you do. The gender pay gap might be real, but you don’t have to let it define your retirement.

Let’s take back control – because we women deserve an epic retirement too.

Bec Wilson is author of the bestseller How to Have an Epic Retirement. She writes a weekly newsletter at epicretirement.net and is host of the Prime Time podcast.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making financial decisions.

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