Why so many older women are retiring into poverty — and how to fix it

For too many older Australian women, the dream of a secure retirement is slipping away, replaced instead with the very real fear of poverty, homelessness, and financial insecurity.

This alarming reality was laid bare in a new report for the Super Members Council (SMC) by Impact Economics and Policy, finding that single women and renters are among the older women most at risk of facing retirement poverty.

Women today retire with about 25 per cent less super than men. For those aged 60–64, the median balance is $51,000 lower, and women are also around ten per cent more likely to reach retirement with no super at all.

Traditionally, this gap was explained by inequality in workforce participation and pay, often linked to time spent caring for children. But the report highlights another factor: later-in-life events. Separation, unpaid caregiving for ageing relatives, and family violence are all far more likely to push women into early retirement or part-time work — costing them up to $95,000 in super savings.

For single older women who rent, the picture is even bleaker. Almost 60 per cent already live below the poverty line.

Reforms like Paid Parental Leave and more flexible work have helped, but men’s super balances will still race ahead. Without bold policy action, life’s setbacks will keep older women locked into retirement poverty.

To address this, the report makes a series of recommendations to government, including:

• Unfreezing the Low-Income Super Tax Offset (LISTO), to help low-income women to build their super.
• Close gendered loopholes in super coverage including through payday super reforms, and by paying super for all workers including nannies, housekeepers and carers, and for all workers aged under 18.
• Remove barriers to women’s workforce participation by boosting access to childcare and aged care and strengthen workplace flexibility.
• Enabling fairer splitting of super in divorce settlements whether or not they are handled in a court.
• Boost Commonwealth Rent Assistance to give immediate help, and invest in new social housing over the medium-term, to protect vulnerable older women who are renting or at risk of homelessness.
• Make the super and age pension systems simpler and easier to navigate.

Super Members Council CEO Misha Schubert says the report’s findings should serve as a wake-up call for all policymakers.

“Australia has made important strides in recent years on the gaps in pay, super and workforce participation, but this research shines a spotlight on the need for further bold reforms to ensure our retirement system truly works for women – especially low-income women,” Schubert said.

“Without urgent action, generations of Australia’s lowest-paid women risk poverty in retirement.

“Recent reforms are an important start, but an even bigger and bolder approach is needed.”

This report is more than a set of figures — it’s a wake-up call to ensure Australia’s retirement system works for women, not against them.

Read more: The superannuation sting costing women thousands in retirement

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