Have you ever wondered why men tend to have more in savings than women? Recent data from Savings.com has revealed some surprising numbers. For example, Aussie men in their 50s and 60s have around $106,000 in savings. Women in the same age group? Less than $23,000.
This savings gap isn’t random. It’s a real issue that affects Australians across all ages, shaped by long-standing social and economic factors. The Australian Bureau of Statistics (ABS) says the wage gap between men and women still exists, which helps men save more over time.
But why does this happen? And, more importantly, how can we close the gap? At Unconditional Finance, we believe that everyone deserves the right knowledge and tools to create a strong financial future. In this blog, we’ll explore why this gap exists and provide practical steps women can take to close it at every stage of life. We’re here to help you achieve your financial goals with personalised guidance.
Young Aussies (18-29): The Savings Race Begins
At this age, saving might not seem like a top priority. However, data shows that Aussie men aged 18-29 already have around $18,000 saved, while women have just $11,000.
One of the reasons for this gap is that men and women often begin their careers with different earnings. Men tend to earn more in entry-level roles, which leads to higher savings early on, according to the Workplace Gender Equality Agency (WGEA).
Differences in financial priorities and spending habits may also play a role, with some studies indicating that men are more likely to prioritise early savings.
To address this, starting to save early is crucial. Automating savings can help ensure you’re consistently putting money aside, even if it’s a small amount.
Tracking your spending through apps like MoneySmart or Pocketbook can also give you a clearer picture of where your money is going and where you might be able to save more.
Midlife (30-49): Catching Up, But Still Behind
In your 30s and 40s, you might notice that the gap between men’s and women’s savings is shrinking. Men in this age group have saved around $27,000, while women are close behind with $24,000. It’s progress, but the gap is still there.
Why does this happen? During this time, more women are working full-time and contributing to household finances, which helps narrow the gap. Dual-income households can also boost savings for both men and women. Many women re-enter the workforce after taking time off for maternity leave, allowing them to save more.
This is a great time to focus on long-term savings. Adding to your superannuation—even small amounts—can really add up by the time you retire. You might also consider investing in property, stocks, or other ways to grow your wealth, such as Investment Loans or SMSF Loans.
50s and 60s: Why the Savings Gap Grows Bigger
As Australians approach retirement, the gender savings gap becomes even more pronounced. Men in their 50s have over $106,000 in savings, while women have only $22,000. This significant difference can have serious consequences as people near retirement and rely heavily on their savings for financial security.
The Australian Human Rights Commission says women often take time off work to care for family, which lowers their total earnings and makes it harder to save money.
Additionally, the ABS reports that women generally earn less than men over their working lives, with the gender pay gap sitting at around 14.2% as of 2023. This wage disparity builds up over time, leaving women with fewer savings as they age.
To address this gap, it’s important for women to start boosting their savings as early as possible, even in their 50s. Making additional contributions to superannuation can be a powerful way to catch up.
For men, it’s also essential to continue building savings and to explore ways to maximise retirement funds through smart investments in shares, managed funds, or other growth-oriented assets.
Retirement Years (65+): How Can You Secure Your Financial Future?
As Australians reach retirement, the gender savings gap narrows slightly, but it remains significant. Men have around $98,000 in savings, while women have about $46,000.
According to ANZ’s Women’s Report on Financial Wellbeing, women are more likely to experience financial insecurity in retirement due to their lower lifetime savings and reduced superannuation balances.
In your 60s, maximising your superannuation and pension options becomes even more important. Make sure you’re making the most of government co-contributions or catch-up super payments, especially if you’re behind on savings.
Downsizing your home or using reverse mortgages are other options to help stretch your savings further in retirement.
Why Does This Gap Exist? And How Can We Change It?
Several factors contribute to the gender savings gap. The WGEA reports that men earn more than women in most sectors, with the current average pay gap at around 14%. Over a lifetime, this gap leads to a significant difference in savings.
In addition, many women take career breaks to raise children or care for elderly relatives, which affects their career progression, lifetime earnings, and superannuation contributions.
Research also shows that men and women may approach saving and investing differently, with women sometimes being more conservative in their investments, missing out on high-growth opportunities.
While these issues are complex, there are steps that individuals can take to address them.
It’s important to start saving early because even small amounts can grow over time thanks to compound interest, leading to bigger savings later on.
Boosting superannuation contributions, even in small amounts, can make a big difference, particularly if you take advantage of government co-contributions.
Smart investments in things like stocks, property, or other assets that grow in value can also help you build your wealth.
Seeking advice from a mortgage broker in Sydney can ensure you have a tailored plan to achieve your financial goals.
Conclusion: Let’s Work Toward Financial Equality
The gender savings gap is a real and pressing issue, but it’s something we can address with greater awareness, policy changes, and better financial planning.
By understanding the challenges and taking action to improve your financial habits, you can secure a better financial future, whether you’re in your 20s or 60s, male or female.
At Unconditional Finance, we’re here to help you take control of your financial future. We can create a personalised plan to help you build your savings, superannuation, and investments.
Contact us today for a free consultation and start securing your financial future.
FAQs on Women’s Financial Planning
Women in their 20s and 30s can boost savings by automating their contributions and prioritising financial planning. Even small, consistent savings matter. Consider setting up direct debit to a high-interest savings account and using apps like Pocketbook to monitor your spending. If you need personalised advice on how to get started, we can help you create a tailored savings plan.
Putting extra money into your superannuation on your own is an excellent way to grow your savings for retirement. You can make personal contributions or take advantage of employer-matching programs. Even adding just a little extra can compound significantly over time. We can guide you through your options to make sure you’re maximising your contributions effectively.
Diversifying your investments is key. Consider property, shares, or managed funds to grow your wealth. Consult a financial planner to choose investments that suit your risk tolerance and long-term goals. We offer personalised investment strategies to help you grow your savings in a way that fits your unique financial situation.
Women who have taken career breaks can increase their savings by focusing on super catch-up payments and taking advantage of government co-contributions. It’s also beneficial to reassess your budget and find areas to increase savings where possible.
Yes, the Australian government offers co-contributions to superannuation and other incentives to help individuals—especially those with lower incomes—boost their retirement savings. Check if you’re eligible for these contributions to enhance your retirement fund. For help navigating these incentives, we can provide guidance to ensure you take full advantage of these opportunities.
