A new report released on 30 September 2025 by Impact Economics and Policy, commissioned by the Super Members Council (SMC), has sounded the alarm: millions of older Australian women could be at risk of retirement poverty if urgent action is not taken.
While the gender superannuation gap has often been attributed to women taking time out of work to raise children, this report highlights that later-life events — such as divorce, unpaid caregiving, and domestic violence — also play a major role in financial insecurity.
This is not only a pressing social issue but one that will directly shape the future of Australia’s Social & Care sector.
Why Are Australian Women Facing Retirement Poverty?
The retirement gap for women goes beyond career breaks due to child-rearing. Contributing factors include:
- Divorce or separation in midlife, which can have devastating financial consequences.
- Unpaid caregiving for parents, partners, or grandchildren, limiting women’s ability to maintain stable incomes.
- Domestic violence, leaving long-term scars both emotionally and financially.
Combined, these factors mean many women risk entering later life without economic independence.
Implications for the Social & Care Sector
The rise of retirement poverty among older women has far-reaching impacts across Social Work, Community Services, Aged Care, and Disability Support:
- Growing demand for services
- More women will rely on affordable community support, social housing, and aged care programs.
- Financial assistance schemes for older Australians will become increasingly vital.
- Broader scope of care work
- Social & Care workers will not only deliver health and personal care but also support clients facing financial hardship, social isolation, and mental health struggles.
- Advocacy roles — ensuring clients can access entitlements and essential services — will become more prominent.
- Need for specialised skills
- Professionals will require stronger skills in counselling, crisis support, and responding to family violence.
- Cross-disciplinary knowledge — blending health, psychology, and community services — will be a major advantage.
Future Trends in Social & Care
With Australia’s ageing population, the report points to several emerging trends:
- Strong job growth: Social & Care is one of the fastest-growing sectors in Australia.
- Policy investment: Governments and NGOs will prioritise programs addressing retirement poverty and gender equality in financial security and care.
- Student opportunities: Careers in Social Work, Community Services, Nursing, and Allied Health promise stability and long-term growth.
- Holistic care models: Integrating health, mental wellbeing, and financial support will define the sector’s future.
Why Action is Needed Now
Women make up the majority of Australia’s ageing population. Without timely intervention, retirement poverty could place immense pressure on the healthcare, welfare, and community service systems.
For those working in Social & Care, this challenge also presents opportunity: to play a pivotal role in building a fairer society while shaping a career of purpose and resilience.
The warning from Impact Economics and Policy (SMC, 30/09/2025) is clear: without action, older women will face financial vulnerability in retirement — and the Social & Care sector must be ready to respond.
This sector will need professionals with compassion, diverse skills, and adaptability — not only to provide physical care but also to support mental health and financial wellbeing.
For students and professionals in Social Work, Aged Care, Disability Support, and Community Services, this is the moment to step into a career that truly makes a difference.
NextGem stands with students and jobseekers on their Social & Care career journey. Follow us for the latest updates, insights, and job opportunities in this growing sector.
