Women and super
closing the gap

A study by Monash Business School, the University of WA and the University of Warwick found that the driving factor behind the gender super gap is contributions², with women receiving lower super contributions than men throughout their life. Why is this?

Women earn less

While there has been some momentum in closing the pay gap, according to the Workplace Gender Equality Agency (WGEA) the average total remuneration gender pay gap was 21.7% in 2023. It means on average, for every $1 men earn in Australia, women earn 78 cents. The average annual pay difference between men and women is a gap of $26,393.³  

Catching up is difficult

Taking time off work means women miss out on receiving regular super contributions, which can make it even harder to close the super gap. Divorced women are even more disadvantaged; research found that divorced women with children had 68% less super than married mothers, and 37% less super than divorced dads.⁴ 

As Dr Carly Moulang from Monash Business School’s Department of Accounting says, “even if women return to work in their 40s after having children, they cannot make up early salary inequity”.⁵  This means that women are more dependent than men on the government Age Pension. And, what’s more, women have an average longer life span than men⁶, so their retirement savings need to stretch further. 

According to the Association of Superannuation Funds of Australia (ASFA), a single woman would need $595,000 for a comfortable retirement⁶, which would enable an older, healthy retiree to have a good standard of living that includes regular leisure activities, some domestic and occasional international travel, and top private health insurance.

Try our Retirement Projection Calculator 

Use our Retirement Projection Calculator to see if you’re on track for a comfortable retirement. Answer a few simple questions and our calculator can estimate how much super you could have at retirement. It can also help you make informed decisions about your super. 

It’s never too late – or too early – to take some simple steps so you can be in control of your retirement savings and build the retirement you want and deserve.

1. Get to know your super‍

It might be easy to just ‘set and forget’ your super but taking a quick look at your payslip and your Hostplus account could help bridge the gap. Here’s some quick tips: 

• check your payslip to make sure you’re getting the right amount of super paid by your employer. The Superannuation Guarantee (SG) rate is 11% of your gross salary. This will rise to 11.5% on 1 July 2024,  
• log into member online to check if you have insurance cover with your super. You can also see if you’re paying for the right cover.  
  
  

2. Consolidate your super

Consider consolidating your super into one account. Why? By consolidating your accounts, you could reduce the fees you pay which can affect your account balance at retirement.  

Before you consolidate your super accounts into one it’s important to:

• compare the fees and performance of each fund 
• check other features of each fund like access to financial advice or member online access  
• check whether you’ll lose any benefits or be charged a fee for closing an account
• remember if you do close a super account, you’ll lose any insurance attached to that account

You may find it beneficial to obtain advice from a licensed financial adviser. Explore your advice options
 

3. Review your investment options with Hostplus

When your Hostplus account is first set up, your contributions to your super are invested in the Balanced (MySuper) option unless you tell us otherwise. 

You can choose from our wide range of  investment options with different levels of risk and return targets.

The way your super is invested can make a big difference to your nest egg by the time you’re ready to retire.

When deciding which option is right for you, it’s important to carefully consider factors such as your financial objectives, risk appetite, age and investment time frame. You may find it beneficial to obtain advice from a licensed financial adviser. Explore your advice options  
 

4. Consider making extra contributions

Your employer contributions are important and there’s also the option to contribute extra.

No matter how large or small, extra contributions can make a big difference over time. Starting at any age could help build your balance with the benefit of compound returns. Find out more about compound returns

Examples of extra super contributions include: 

• After-tax contributions  
  These are also known as non-concessional contributions. You can make extra payments to your super using your take-home pay or savings in your bank account. How much and how often you make these contributions is up to you, but annual limits apply. 
• Spouse contributions and splitting 
  Tax offsets may apply for a spouse who contributes super on behalf of a low-income earning or non-working spouse. Your spouse can also divert some of their super contributions to your super account. Eligibility terms apply. 
• Low Income Superannuation Tax Offset (LISTO) 
  Low-income earners may be eligible to receive a refund into their super account of the tax paid on their eligible super contributions, up to a cap of $500. 
• Government co-contributions 
  If you’re a low or middle-income earner and make after-tax super contributions, you may be eligible to receive a co-contribution into your super from the government of up to $500.  
• Salary sacrifice 
  Contributions to your super from your before-tax salary are taxed at 15%, lower than most people’s personal tax rate. Limits apply. 
   

5. Nominate a beneficiary

Nominating a beneficiary can help your super, pension or any insurance benefits go to the right person, or people, after you pass away. Learn more about beneficiaries here. 
 

6. Expecting a baby?

Hostplus members can apply for premium-free insurance cover during parental leave.⁷ Learn more about the parental leave premium waiver here.