You’ve probably heard of the gender pay gap, but did you know this often extends to super as well? The gender pay gap refers to the difference between the average pay of women and men across organisations, industries and the workforce as a whole. The gender pay gap is the difference between the average earnings for men and women, expressed as a percentage of men's average earnings. In 2022, it was 22.8%*; the same as the previous year.

There are a number of factors that contribute to the gender pay gap, such as:

• women and men working in different industries and different jobs, with female-dominated industries and jobs generally attracting lower wages;

• higher rates of part-time work for women; and

• more women taking time out of the workforce or caring responsibilities. 

Women and super

With almost one in five Mine Super members being female, it’s our purpose is to deliver exceptional retirement outcomes for ALL. At retirement, the average super balance for women is around $70,000^ less than the male average, so it’s clear that women have a much bigger task ahead of them to get their super in shape. And on top of that, women’s retirement savings need to stretch further, as they generally live longer than men. That’s why it’s important for women to take steps now to boost their super savings. 

What can you do now?

Whether you’re male or female, there are simple things you can do now to increase your retirement savings and ensure you’re protected in case you’re unable to work because of illness or injury, become permanently disabled or die.

1. Boost your partner's super

The Government encourages people to put money into super by taxing contributions at a lower rate than other investments. That’s why it’s a great way to save for your retirement. There are a number of options to boost your super savings, including some specifically designed for low income earners, or those with a spouse who has a low income. Find out more on the Boost my super web page.

Did you know? Since 1 July 2022, employers need to pay super no matter how much you earn. Previously, employers didn’t need to pay super for employees who were paid less than $450 a month.

2. Split your super contributions

The Government allows you to split any before-tax contributions you make to your super with your spouse each financial year. You can use this to access tax-free super sooner or increase Age Pension entitlements. For more information, read our Super contribution splitting strategies for couples factsheet. 

3. Review your insurance

Insurance is there to protect you and your family financially in the event something unforeseen happens to you. As you move through life you should check your insurance needs to make sure that you have sufficient cover. Most super funds (including Mine Super) offer death, total and permanent disability (TPD) and income protection insurance for their members. Are you a Mine Super member and not sure what insurance cover you have or how much your premiums are? Log in to your online account where you can review and manage your insurance (except Income Protection). 

4. Combine your super

According to the Australian Taxation Office (ATO), as at 30 June 2020, around four million people had two or more super accounts. If you have multiple super accounts you could be paying fees and insurance premiums for each one. Combining your super into one account means you have one balance that will grow over time and benefit from the snowball effect of compound interest, and might leave you with a bigger balance in retirement. For more information, go to our Combine your super web page.

5. Speak to a financial adviser

Australians with a financial adviser in their corner have a better quality of life, according to research from the Financial Planning Association of Australia^~. They experience benefits beyond financial advantages, such as less financial stress, a higher quality of life, more financial confidence, and they’re more satisfied with their wealth.