Self-managed superannuation funds (SMSFs) are a popular way to invest retirement savings for hundreds of thousands of Australians. I'm sure everyone would like to retire with a great superannuation nest egg, so it's interesting to know how much progress people are making with that investment strategy.
Class recently released its 2025 annual benchmark report, which highlighted the gender gap differences. Class is a cloud SMSF accounting software provider, owned by Hub24 Ltd (ASX: HUB), so it can provide key insights into the numbers.
While it's unsurprising that there is a gender gap between males and females with the average SMSF superannuation balance, there are some promising signs.
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The SMSF average superannuation balance gender gap is reducing
According to Class' report, the gender gap between male and female balances continued to narrow in FY25, down 5.5% from $133,750 to $126,422 in dollar terms.
As a percentage of male balances, the average female balance increased by 0.5 percentage points (0.5%) to 87.4%.
Class noted that women are increasing their contributions during their working and retirement journey, which is helping to reduce the gender gap in superannuation balances.
The software provider said strategies such as contribution splitting and recontribution are becoming increasingly important, particularly if one member has a balance above $3 million and could be subject to the proposed Division 296 tax. Class said that boosting the member with the lower balance may be an effective approach.
Class also noted that the gender gap in APRA funds also improved slightly, by 0.5 percentage points (0.50%) in FY24 (being the latest data), but remains above pre-COVID-19 levels.
The Class report suggested that women are slowly closing the gap in superannuation balances.
Promising outlook
Class suggested the long-term gender gap in the average SMSF superannuation balance may be helped even more by the introduction of superannuation on government-funded parental leave pay from 1 July 2025.
The accounting provider believes this change should be particularly helpful for women in the age group of 35 to 44, where the gender gap is greatest (for those in Class funds) at 23.4%.
After peaking in the 35 to 44 age group, the gender gap for Class members gradually declines to 7.8% for those aged 85 and over.
Class suggested that as women near and enter retirement, many women are likely to take advantage of the strategies available to boost their balances.
There are a number of things that Australians can do to boost their superannuation over time, beyond just the mandatory contributions that are required. Australians can make additional concessional or non-concessional contributions, as well as chose investments that could deliver stronger long-term returns.
