By Hannah Wootton - Money Management
Research from Monash Business School has proven that the gender pay gap begins from the first days of employment, making it little wonder that women end up with both significantly less superannuation and more reliance on the Aged Pension than men by retirement.
The effect of the wage gap amounted to more than $80,000 on average by retirement – presumably capable of being far more had a portion been invested in super – which was an insurmountable deficit to recoup by retirement.
Monash’s research used administrative data from Mercer to show how the wage gap even early in careers had a cumulative effect on retirement savings, looking at super accumulation trends from 2002 – 2012.
“In 2002, comparing the retirement balance of men and women, the youngest cohort [early career at age 24 – 26] had an average gender gap of $1142 in 2002 while the oldest group had $21,889,” one of the researchers, Dr Carly Moulang, said.