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Closing the super gender gap

May 2010

There’s no doubt that when it comes to retirement savings – there’s currently a sizeable difference between men and women’s balances. Given that women generally live longer and contribute less into their super than their male counterparts, it’s not surprising to learn that woman are two and a half times more likely to live in poverty in their old age than men. With almost five million women in the Australian workforce, this is an issue that women need to consider.¹

A range of factors have caused the inadequacy of retirement savings for women. The most obvious being that many women take a career break to have children and often return to work on a part-time basis. In addition, women tend to retire earlier than men, resulting in a shorter working period in which to accumulate assets. This problem is further increased as women’s super has to stretch over a longer life expectancy.

Each of these factors may hinder a women’s ability to accumulate an adequate amount of super.

In 2007, the average superannuation balance for men was $87,589 compared to $52,272 for women².

With life expectancies increasing, financial security is becoming more important than ever.

Helping close the gap

Recognising that the inadequacy of women’s super savings is a pressing issue in Australia, Plum have taken an active stance and introduced a number of initiatives to help combat the problem.

Plum have developed the What women want kit, a resource designed specifically for women - by women. The kit contains an easy-to-read guide that outlines some super strategies that may help women to save more. There’s also a comprehensive checklist that will help women assess their current situation, financial needs and goals. And our dedicated online What women want module in the members’ section of the Plum website – www.plum.com.au which provides a wealth of information including budgeting calculators and fact sheets.

There’s also Plum’s comprehensive education program, which has always been an integral part of their super solution. The education program focuses on encouraging members to take an interest in managing their super savings by offering a curriculum that guides them through every stage of their investment.

Next steps

For more information about these initiatives and other strategies to help you build your retirement savings, visit www.plum.com.au or contact a Plum Member Services Consultant on 1300 55 7586, any business day, 8.00am to 6.00pm, Melbourne time.

¹ Source: Speech given by Pru Goward at the 2004 ASFA National Conference and Super Expo, Adelaide 11 November 2004.
² http://www.fahcsia.gov.au/sa/women/progserv/economic/Pages/default.aspx