Many Australian women retire with significantly less superannuation than men. This is often not the result of poor financial decisions, but rather the reality that women are more likely to take time out of the workforce or work part-time while raising children or caring for ageing parents.
That’s why financial planning for women is different. You need a retirement plan that considers the unique challenges women face, including career interruptions and disruptive life events, like divorce or widowhood.
A financial planner who specialises in women’s financial advice is best placed to help you secure a stronger financial future.
The widening super gender gap
According to the Super Members Council analysis of Australian Tax Office data, women’s median super balances remain well below men’s in every state, despite women making extra personal contributions at a higher rate than men.
And the gap is growing. Women aged 60–64 retired with around 26% less super than men in 2023–24, up from 20.5% in 2016–17. In real terms, women in the pre-retirement age bracket hold a median super balance of around $175,000, compared to $236,000 for men.
Closing the gap: retirement savings strategies for women
Start with a clear retirement plan
Effective retirement planning starts with knowing what you’re working towards.
- At what age would you like to retire?
- What kind of lifestyle do you want in retirement?
- Will you move or continue living on the Gold Coast?
- What will healthcare costs look like as you age?
From there, look at where you stand today, taking into account your current super balance, any other assets and savings, and start building a financial roadmap that takes you closer to your retirement goals.
Even if you feel you’ve fallen behind, putting the right retirement savings strategies in place today can help you recover some lost ground. A financial planner can help with goal setting and savings advice on the Gold Coast.
Boost your super while working
One of the most effective ways to maximise superannuation benefits is to contribute more while you are earning an income. You can do this through:
- salary sacrifice
- personal deductible contributions
- government co-contributions
- spouse contributions
- catch-up concessional contributions
Every additional contribution, no matter how small, can make a meaningful difference over time, because investment returns compound inside your super.
Plan ahead for career interruptions
Time out of the workforce is a reality for many women, whether for maternity leave, to raise children or care for ageing parents. This is where many women lose momentum on their retirement savings, but with some forward planning, the impact can be minimised.
Review your super balance regularly and adjust your financial plan after major life changes, if necessary.
If you’ve switched to a part-time role, continuing to make small super contributions, where possible, keeps the compounding effect working in your favour.
Proactive financial planning for women means creating wealth protection strategies that are flexible enough to absorb life’s interruptions while building financial security for the future.
Protect and grow wealth outside your super
Superannuation is one of the most tax-effective ways to save for retirement, but it should not necessarily be your only asset.
Effective wealth management for women means building a diverse portfolio that may include property, managed funds and cash reserves.
What divorced and single women should consider
According to the Australian Bureau of Statistics, 30% of retired women rely on their partner’s income to meet their living costs at retirement, compared to 9% of retired men.
But what if you find yourself without a partner when you reach retirement age with less super savings than anticipated? That’s why financial freedom planning is so crucial for women. The quality of your retirement shouldn’t depend on a partner’s support.
Divorce, separation and widowhood can create unique financial challenges for women that require careful planning.
For example, many women are surprised to learn that superannuation is considered a marital asset and may be divided as part of a divorce property settlement. You should also review any insurance held within your super, as your needs and circumstances will have changed. That’s why financial advice for women divorcing is important.
A financial adviser can help you understand your entitlements, guide you on super splitting arrangements and assist in updating beneficiary nominations after separation.
Rebuilding your finances on a single income can be daunting. Working with a specialist financial adviser for women can help you establish new savings goals and build more robust wealth protection strategies into your financial plan.
Why working with a financial planner who understands women’s financial needs matters
Every woman’s financial journey is different, which is why tailored financial planning for women is so important.
The benefits of an ongoing relationship with a financial adviser include tax-effective strategies based on your mix of investments, retirement modelling, portfolio diversification and an accountability partner to keep your long-term goals on track.
Beyond developing a personalised retirement strategy, a financial adviser can help grow your confidence around financial decision-making, especially if you find yourself facing a single income after separation or the death of a spouse.
Conclusion
At RFS Advice, we specialise in providing financial advice for women by women – a dedicated team who uniquely understand the challenges women face. We believe in building a long-term relationship with you, helping you navigate life’s difficult transitions – both financially and emotionally.
Ready to take control of your financial future? For friendly and trusted financial advice on the Gold Coast for women, book a call with RFS Advice today.
Frequently asked questions
Several factors contribute to the super gender gap. Women are more likely to take time out of the workforce to raise families and for caregiving responsibilities. They either stop working completely or have extended periods of part-time work. These interruptions reduce both employer contributions and the compounding growth of super over time.
You can boost retirement savings through strategies such as salary sacrifice, personal deductible contributions, government co-contributions and catch-up concessional contributions. A financial adviser for women can outline the right approach, depending on your circumstances and contribution limits.
Superannuation is considered a marital asset and may be divided as part of a property settlement. Super splitting arrangements can allow a portion of one partner’s super to be transferred to the other. Losing a portion of your super can set your retirement savings back. That’s why financial advice for women divorcing is important.
Start by understanding how much you’ll need to fund your preferred lifestyle in retirement, then work backwards to identify any gap between that figure and your projected super balance. Don’t rely only on your super. Diversify your investments and review your portfolio regularly. A financial planner can help you model different wealth creation strategies and their potential contribution to your retirement savings.
General advice warning:
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.
