Not much in the retirement fund ... About half of all Australian women earn less than $40,000 per year. Picture: Supplied.

THE gender retirement savings gap has widened to alarmingly high levels which could leave many women in poverty once they stop work.

Lower-paid jobs and extended time out of the workforce are the core reasons for the growing divide between male and female superannuation savings.

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New figures released by the Australian Bureau of Statistics shows the gap between median super balances for Australians in the 55-64 age group has spread to more than $70,000 in 2013/14.

Lest egg ... The gender gap in retirement savings between men and women is continuing to widen to alarmingly high levels. Picture: Supplied.Source:Supplied

Median males balances are $150,000 compared to almost half this for females at just $80,000.

The gap has worsened for women since 2011/12 when the median male balance was $107,000 compared to females at $65,000.

It comes as the Women in Super and Australian Institute of Superannuation Trustees are set to appear before the Senate Inquiry into Women’s Economic Security in Retirement in Adelaide this week.

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Women in Super chair Cate Wood said the widening gap meant “women facing a real danger of living in poverty at retirement” if changes weren't made.

“That’s exacerbated if they are not a homeowner and they retire with very little superannuation and even worse — if they have health issues they are in dire straits,’’ she said.

“Women too who have been through divorce are at greater risk, there’s just too many women that slip through the super system.”

Females at birth today have a life expectancy of 84 compared to men at 80.

AIST chief executive Tom Garcia said the growing gap was a serious issue that must be addressed.

“It’s very concerning that year after year Australian women are still retiring with nearly half the savings of their male counterparts,’’ he said.

Ms Wood said urgent changes needed to be made to the super system including making super contributions compulsory for the self-employed and implementing a redistribution of tax benefits to low-income earners.

She also said compulsory contributions needed to be made for low-income earners who currently don’t have to be paid super if they earn less than $450 per month before tax.

About 50 per cent of Australian women earn less than $40,000 per year.

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