Women beginning their careers in 2025 with the new 12% super guarantee rate in place could be hundreds of thousands of dollars better off in retirement, new modelling has revealed.

The modelling showed women representative of the average HESTA member were projected to retire with $712,000 if earning the new higher rate of super for their entire working lives – a $411,000 boost compared to women modelled to retire this year. 

The modelling factored in time out of the workforce to care for children and part-time work, demonstrated the significant impact on retirement balances from the higher super guarantee.

“The modelling suggests women starting work today could retire with more than double the amount of super compared to female workers modelled to retire this year,” said HESTA CEO Debby Blakey.

Nearly 80% of HESTA’s more than one million members are women, working in typically lower-paid industries such as aged care and early childhood education.

"Many take time out of the workforce to care for children or loved ones, and this further impacts their ability to build adequate super balances," said Ms Blakey.

Since 1 July, employers have been required to pay 12% of eligible employees’ ordinary time earnings, up from 11.5%. The introduction has also coincided with the super payments on Commonwealth Paid Parental Leave, helping address the fact that Australian mums have missed out on well over $3 billion in super savings at retirement.