Key Takeaways

  • Women retire with materially less superannuation than men on average, driven by the gender pay gap, career breaks, and higher rates of part-time work.
  • Targeted strategies exist to help close the gap: spouse contributions, the government co-contribution, carry-forward concessional contributions, and contribution splitting.
  • The Low Income Superannuation Tax Offset (LISTO) refunds up to $500 of contributions tax for those earning up to $37,000 — automatically boosting low-income earners' balances.
  • The concessional contributions cap rises to $32,500 from 1 July 2026, creating more room for catch-up contributions for those with balances below $500,000.
  • Additional contributions made in one's 40s and early 50s compound far more than the same contributions made closer to retirement.

The Gap Is Real — and It Matters

Despite the Superannuation Guarantee applying equally to all eligible workers, women consistently retire with significantly lower balances than men. Lower average wages, career breaks for caring responsibilities, and higher rates of part-time employment all compound over decades. Twelve per cent of a part-time wage, contributed for fewer years, produces a retirement balance that can be a fraction of that built by a male counterpart in continuous full-time work.

For many women, a smaller super balance means greater reliance on the Age Pension and reduced flexibility in retirement. In 2026, with the SG rate at its highest ever level of 12%, the foundation is stronger — but it will not close the gap on its own.

Understanding the Sources of the Gap

The SG is a percentage of ordinary time earnings, so a lower salary produces proportionally lower compulsory contributions over a career. Career breaks create periods of zero employer contributions — and the compound growth lost on those contributions over the remaining decades can be substantial. A break in one's thirties can have a disproportionately large effect on the final balance.

Many women return to work on reduced hours following a career break, compounding lower contributions further. A historical monthly income threshold that excluded lower-earning workers from the SG disproportionately affected women; that threshold has since been abolished.

Strategies to Close the Gap

Personal After-Tax Contributions

The non-concessional cap for 2025–26 is $120,000, rising to $130,000 from 1 July 2026. The bring-forward rule allows up to three years of non-concessional contributions in a single year — rising to $390,000 from 1 July 2026 — particularly useful when a lump sum from an inheritance or redundancy is available.

Government Co-Contribution

For those earning up to $37,000, the government contributes up to $500 for every $1,000 in personal after-tax contributions made, phasing out at higher income levels. The payment is automatic after tax return lodgement, but the contribution must be made before 30 June to trigger it.

LISTO

The Low Income Superannuation Tax Offset refunds up to $500 of the 15% contributions tax for those earning up to $37,000. Without it, low earners would be penalised for contributing to super, since the contributions tax exceeds their marginal income tax rate. LISTO is paid automatically into the member's super account.

Carry-Forward Concessional Contributions

Those with a total super balance below $500,000 can access up to five years of unused concessional cap space in a single year. For women who had career breaks during which few concessional contributions were made, this is a significant catch-up opportunity on returning to higher-earning full-time work. With the cap rising to $32,500 from 1 July 2026, the potential top-up for eligible individuals can be substantial.

Spouse Contributions and Contribution Splitting

A higher-earning spouse can make after-tax contributions directly into their partner's super account, with a tax offset of up to $540 per year, subject to income thresholds. Contribution splitting allows a member to redirect up to 85% of their concessional contributions to their spouse each year. Both strategies help equalise balances within a couple.

Starting Early Is the Biggest Lever

The compounding mathematics mean contributions made earlier in life far outweigh the same contributions made closer to retirement. A woman in her early 40s beginning additional contributions now has more than 20 years of growth ahead. The ASFA Retirement Standard estimates a comfortable retirement for a single homeowner at around $54,240 per year, requiring approximately $595,000 alongside a part Age Pension. Knowing where you stand against that benchmark and acting on the gap is the starting point.