The average superannuation balance of Australian women approaching retirement is just $80,000, according to August 2017 data from the Australian Bureau of Statistics Labour Force survey. This is well below the $150,000 in average retirement savings accumulated by Australian men by the time they retire.

"The total figures reflect the fact that the people retiring today have not been in the system the whole of their working life," says Pauline Vamos, chief executive officer of governance research and consulting firm, Regnan, and former head of the Association of Superannuation Funds of Australia.

"The gap between men and women reflects female broken work patterns, generally lower wages, and lower-paying industries, as well as the $450 per month minimum Superannuation Guarantee threshold that impacts women in single and multiple part-time jobs."

To help fill the gap in retirement savings, Vamos suggests women who may be considering having a baby should contribute more into super beforehand. "And obtain financial advice, try and access spouse contributions, check what you are paying in fees and insurance premiums, and finally, do not have multiple accounts!" she urges.

Patrick Garrett, chief executive officer of Six Park, an automated advice provider, agrees that issues of gender inequality partly explain women's average retirement savings shortfall. The company recently commissioned a paper on the issue, "Becoming a Financial Superwoman".

"The inequality that women face financially is a critical issue and there's little doubt policy needs to be adjusted to address the problem," Garrett says.

"At the same time, policy changes can be years in the making and, in the meantime, women are losing precious time to make up the savings gap if they aren't being proactive about savings and investment."

To help address the shortfall, the study recommends a multi-pronged approach spanning savings, investment, and superannuation.

Savings

Budgeting is a critical first step--work out how much spare cash you could realistically set aside each month.

Setting financial goals is also important, and paying down any high-interest debt, such as credit cards, is a first step. Then establish other goals, which can help you maintain focus and motivate you to keep saving.

A regular savings plan is another recommendation--whether you put $20 a week into an investment account, or make voluntary super contributions, "it's important to have a regular savings pattern and stick to it. Consider a direct debit, otherwise it may fall by the wayside when you get busy," Garrett says.

Investment

Investing is a central approach to building wealth towards retirement.

Every investment carries risks, but if your capital is diversified across a variety of asset classes--such as Australian and international shares, listed property, residential/investment property, infrastructure assets, and bonds--the negative performance of some investments will tend to be neutralised by the positive performance of others.

Over the longer term, the overall portfolio will yield higher and less volatile returns.

Though they're not without some amount of risk, exchange-traded funds (ETFs) are a low-fee way to diversify.

ETFs can provide instant access to a diverse range of securities and their fees tend to be lower than many non-listed managed funds because they take a "passive" approach to investing and don't try to outperform the market.

Super consolidation

A good first step is to minimise the fees you pay. You may have more than one superannuation account after changing jobs. If so, it may make sense to roll the funds into one. This can minimise fees and make your super easier to track.

You can conduct a simple online search for lost super by visiting the Australian Taxation Office website.

Consider voluntary contributions

If you have any spare cash that isn't committed elsewhere, consider making voluntary contributions to your superannuation.

Plan for career breaks

Consider making extra superannuation payments before you go on maternity leave, or make contributions from any paid parental leave you receive. Spouses can also make contributions on your behalf when you're taking work breaks to look after family.

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Glenn Freeman is a Morningstar senior editor.

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