Celebrating the value of equality—International Women’s Day

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Published on 1 Mar 2023

Each year on 8 March, International Women’s Day draws our attention to the progress we’re making, and the actions we still need to take as a society working towards equality.

Flexibility, a first step

Our neighbourhoods and workplaces—and governments around the world—are in many ways, still stabilising after the turbulence of the pandemic, and we’re reassessing the ways we live and work. Most workplaces offer greater flexibility now, and this has the potential to benefit everyone, especially women.

Traditionally, women have been more likely to work part-time and take on caring responsibilities which can result in shorter careers, being overlooked for more senior well-paid roles, lower lifetime incomes and therefore, lower super balances^[1]. It’s a vicious cycle as women tend to live longer and need to fund their retirements for longer.

Flexible working practices are one of the ways women can potentially keep their careers on track while juggling competing priorities, and men can have more opportunities to participate in family life.

Fathers who work from home can help households create the structures needed for both men and women to continue to succeed in their careers^[2]. According to the Australian Financial Review, “…a benefit of the pandemic is that dads have spent more time at home with their kids and realised that caring and a career don’t have to be mutually exclusive^[3]”.

Financial equality

While recent changes to traditional norms may help establish parity and benefit women and men, reports show there is still a way to go when it comes to financial parity.

In the last financial year, the gender pay gap did not improve for the first time in nine years^[4] and men earned 22.8% more than women. And it doesn’t stop there. The gender pay gap exacerbates the gender super gap.

According to KPMG, the median super balance for men aged 60-64 is $204,107 and it’s 28% less for women in the same age group at $146,900. In pre-retirement years (ages 55-59) the gap is higher at 33% and in the peak earning years of ages 45-49 it’s higher again: 35%^[5].

It’s important to keep in mind that in addition to being paid less and having lower super balances, women are generally more negatively impacted financially when a relationship breaks down.

Acting for super parity

The issue of low super balances for women is not specific to Australia. A recent study by Mercer, the CFA Institute and Monash University reveals that a gender super gap exists in every retirement income system in the world. All 44 countries studied provide higher retirement incomes for males than females^[6].

Australia’s superannuation system ranks sixth^[7] in terms of overall adequacy, behind Iceland, Netherlands, Denmark (which share the lowest levels of poverty among older populations), Israel and Finland.

Denmark’s support for greater gender parity is the most practical—Denmark’s female population receive higher contributions than its male population: 11.2% for women and 10.8% for men^[8].

We may be some time away from increased super payments for women in Australia. However, we do have a super system that ensures 10.5% of each employee’s salary is saved on their behalf.

Simple steps to more

It’s important for women and men, while they’re still working, to ensure they can enjoy a comfortable retirement.

Consider taking control of your future and follow our three simple steps to build your super:

Step 1

Check your super balance—it’s vital to understand how much super you have and how much you’ll need to fund your lifestyle down the track. If you’re a Prime Super member, register for online access to MemberOnline and keep an eye on your account.

Step 2

Combine your super—you only need one super account. By bringing all your money together into one account, you can keep track of your super more easily and save money by only paying one set of fees.

Step 3

Contribute to your super—every little bit counts and the more you have, the more you can benefit from compounding interest. Find out how you and your partner can top up your super—particularly when taking a break from working—and potentially pay less tax.

We’re here to help

No matter how far away your retirement may be or whether you’re male or female, it’s not too early or late to start looking after your super. Take an interest in your money and consider aiming to boost your balance and enjoy a comfortable retirement. If you have questions about your super and how to make the most of your time in the workforce, phone one of our team members on 1800 675 839 between 8am and 8pm AEST Mon–Fri or email us.

This article is current at the date of publication and is subject to change. It contains general information and does not take account of your specific objectives, financial situation or needs or personal circumstances. You should seek professional financial advice, consider your own circumstances and read our Product Disclosure Statement (PDS) before making a decision about Prime Super. For a PDS and Target Market Determination call 1800 675 839 or visit the primesuper.com.au/pds. Prime Super Pty Ltd ABN 81 067 241 016 AFSL 219723 RSE L0000277 (Trustee), Prime Super ABN 60 562 335 823 RN 1000276.

[1] https://www.aist.asn.au/Media-and-News/News/2022/Media-Release-AIST-disappointed-at-another-missed-

[2] https://www.afr.com/work-and-careers/workplace/in-the-wfh-era-more-men-are-stepping-into-primary-carer-roles-20220207-p59uct

[3] https://www.afr.com/work-and-careers/workplace/in-the-wfh-era-more-men-are-stepping-into-primary-carer-roles-20220207-p59uct

[4] https://www.smh.com.au/politics/federal/why-the-23-per-cent-pay-gap-between-men-and-women-isn-t-closing-20221212-p5c5hj.html

[5] https://kpmg.com/au/en/home/insights/2021/08/gender-superannuation-gap.html

[6] https://www.mercer.com/content/dam/mercer/attachments/private/gl-2021-global-pension-index-mercer.pdf

[7] https://www.mercer.com/content/dam/mercer/attachments/private/gl-2021-global-pension-index-mercer.pdf

[8] https://www.mercer.com/content/dam/mercer/attachments/private/gl-2021-global-pension-index-mercer.pdf