Michelle: Women are retiring with less super, but a few small choices can help change that. In this episode, you'll hear about the key moments that can make a difference.

Shane: Hello. My name is Shane Hancock, and I am the General Manager, Retirement at AustralianSuper. And welcome to our podcast, The moments that count. Before we start, it's important to note that the information discussed in this podcast is general only and doesn't take into account your needs or personal objectives. You should assess your own financial situation and needs. Today, this podcast is being recorded at our head office on the land of the Wurundjeri people of the Kulin Nation. I, and AustralianSuper, acknowledges the traditional custodians of country throughout Australia. We pay our respects to Elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people.

It's International Women's Day in March and while progress is real, the gender super gap still means too many women retire with less and need it to last longer. Today, we're mapping the moments that count across a working life and the small moves that can make a big difference. Whether you're just starting out, making a career pivot or approaching retirement, this episode is for you.

To discuss this very important topic, I'm pleased to be joined by Michelle Kelada who is an Education Manager at AustralianSuper. Welcome, Michelle, and thanks for joining us.

Michelle: Thanks, Shane. It's great to be back on the podcast.

Shane: Okay, so I've used a term in the introduction which is gender super gap. Can you explain what that is for our listeners?

Michelle: For sure. So, this is the gap between the average super balance of a man and woman at retirement. So the super gender gap tells us that women are retiring with less superannuation than men and there are a few key reasons for this. And the first one is the gender pay gap.

So, on average, women earn less than men and because compulsory employer contributions are based on a percentage of someone's employment income - this means women generally accumulate less super over their working life. The other reason is part-time and casual work. We know that women are more likely to be in part-time or casual employment over the course of their lives, which again can impact compulsory employer contributions or even what they may be able to afford to put into super themselves.

And the final reason is time out of the workforce. A woman's working life may be interrupted by parental leave and time off to raise their family as well as taking time off to care for elderly family members, which can have the same effect.

Shane: So, Michelle, we've talked about what the gap is, but for women starting out, what are two or three small super moves that matter most to make an impact?

Michelle: The first small move is just engaging with your super from early on. When you're young, super isn't usually a top priority, but setting up your account properly and checking in on it regularly can help you get off to a good start. Once your account is set up correctly, it doesn't stop there, you want to be checking your account to make sure you are receiving contributions. Most super funds have an app that make this really simple to do.

The next is checking your investment option. When you join a super fund, if you don't make an active investment choice, most people will default into an investment which may or may not be the right option for them. So, making sure it meets your needs, given that most of those just starting out tend to have a long investment horizon, is an important step. And then finally, consider making a small voluntary contribution if you can. The power of compounding returns over your working life means a small contribution now could have a big impact on your future savings, and a little bit could go a really long way.

Shane: Thanks Michelle. So, at the beginning, we talked about one of the key reasons for the super gap is time out of the workforce for women. Can you help our listeners plan for those events?

Michelle: So, we know why we've got this gender super gap, and we've spoken about those points already. And one important recent change is that from 1 July 2025, the Australian government is paying a 12% superannuation contribution on its government-paid parental leave, and this is paid directly into your super fund after the financial year.

This is a really great step towards closing the gender super gap for those that are taking time out of the workforce. You might also consider what's called spouse contributions, so if you have a partner who will continue to work, you may be able to grow your super balance with after-tax contributions from your spouse into your super. It does depend on your income and there are eligibility criteria to be aware of, but if these are met, your spouse could be eligible for a tax offset.

Another one that you might want to check your eligibility for is what's called the government co-contribution. This one is again tied to earnings and eligibility criteria do apply and essentially the Australian government makes super co-contributions to help low and middle income earners boost their retirement savings.

So, if you are on parental leave, you're probably earning less than what you normally would and if you meet the eligibility criteria, this could be a good option for you to consider, remembering that you do need to make an after-tax contribution into your super to be eligible for the co-contribution from the government.

Shane: So, Michelle, life happens, people change jobs, go to part-time work, marriage separations, what are some key super steps for people to take in those situations?

Michelle: So, in any big life shift, there are three things that you could do and we've touched a little bit on this already. Keep track of your account, check your contributions and update what's changed with your super fund. These small check-ins help your super to stay on track. If you have insurance inside your super, you do also want to check that this still meets your needs.

Earlier we spoke about setting up your investment option correctly and if your situation has changed, it's also a good idea to make sure that your investment option still suits your investment goals. Consider if you can add a little extra to your super and if your employment, income or relationship status changes, review and update your super details, including things like your beneficiary nominations.

Shane: So Michelle, we all know superannuation's primary purpose is to help someone fund their retirement. So, for women who are approaching retirement, what are some steps they can take?

Michelle: Firstly, don't be disheartened if your super isn't something you've paid a lot of attention to in the past. It's never too late to start planning. One of the things you might want to consider doing is using a tool like our super projection calculator. This can help you see how your super is tracking and what your retirement might look like, and help you to set realistic goals now which could make it easier to make informed decisions for your future.

Finally, you might consider getting trusted financial advice. Retirement planning can be complex, and the right advice can help you make informed decisions and feel more confident about what your retirement and future might look like.

Shane: So Michelle, thank you. We've covered a lot of actions today, so we'll include a link to those actions that we've spoken about in the show notes. For more resources, visit australiansuper.com/women, which will have a whole range of information that we've covered today. So Michelle, really important topic. Again, you've explained it really well, so thank you.

Michelle: Thanks Shane.

Shane: Thank you for joining us today. If you're an AustralianSuper member and you would like to join us to share your story or have a question or topic you would like us to cover, then click the link in our show notes to get in touch. If you've enjoyed this podcast, subscribe and share with your friends and family. See you next time.