Australian women most likely to retire early

Australian women are leaving work sooner and not always by choice

Australian women are leaving the workforce earlier than their global peers – and often not by choice. BSI’s 2025 Lifting the Second Glass Ceiling report shows that nearly one in three (31%) expect to retire early, compared with 21% globally. Fewer than four in 10 (38% vs 41% globally) believe the gender pay gap will be closed for their generation, with 69% (vs 71% globally) saying that pay parity would help keep women working for longer.

The report from the business improvement and standards company BSI, draws on the views of 6,500 working women across seven countries, including over 1,000 in Australia. It shows that fostering a culture of care in workplaces by investing in formal and informal support around areas including menopause, cancer support or miscarriage, as well as greater flexibility is critical to retaining women in the workforce.

In just two years[1], women’s levels of optimism on reaching gender pay parity have dropped from 57% to 41% globally. For Australian women, this outlook is even more pronounced, with only 38% confident the gender pay gap will close for their generations, and just 42% believing they will attain leadership positions to the same degree as men (vs 46% globally). Confidence in receiving the same flexibility and support to remain in the workforce as long as men has also fallen significantly, with only 41% Australian women (vs 47% globally) confident that the next generation will receive the flexibility and support needed to stay in the workforce as long as men.

Crucially, the data suggests these departures are not always driven by personal choice, with barriers including physical health (32% of Australian women vs 27% globally), menopause (23% of Australian women vs 20% globally), and pay imbalances continuing to push women out before their time (14% of Australian women vs 14% globally). For Australian women, 69% (vs 71% globally) said pay parity with male colleagues would help them remain in the workforce for longer, while for 76% (vs 75% globally) tax or pension incentives are key. 82% (vs 77% globally) highlighted improved support for chronic and other illness such as cancer would be welcome.

Caregiving responsibilities persist as a constraint: 23% of Australian women (vs 21% globally) report caring responsibilities for parents or elderly relatives as a barrier to remaining in the workforce, and 13% (vs 12% globally) cite the demands of looking after grandchildren. Women are unequivocal that improved support for maternity and return to work would help them stay in the workforce (80% of Australian women vs 76% globally) and paternity leave (78% Australian women vs 71% globally). Yet the data also shows that less than half (36% of Australian women vs 44% globally) expect that caring for parents and children will be equally distributed between men and women in the next generation workforce.

As return to office mandates continue to be announced by major firms, the research finds that although 66% (vs 65% globally) of women in Australia work in person, 81% (vs 78% globally) want greater flexibility in where or when they work, and nearly half (48% vs 42% globally) believe this would directly support their ability to stay in the workforce longer. The data bears this out; women who reported experiencing menopause, difficult pregnancies or mental health challenges said that working flexibly enabled them to remain productive. While 12% of Australian women (vs 10% globally) for whom it was relevant took time off for menopause, 16% (vs 17% globally) either worked flexibly, or other adjustments were made, so they did not need to be absent. For difficult pregnancies, 13% of Australian women (vs 12% globally) took time off, whereas 15% (vs globally 15%) said flexibility or adjustments kept them from taking time off. For mental health challenges, 29% of Australian women (vs 18% globally) took time off, while 18% (vs 18% globally) worked flexibly or had other adjustments made.

Expectations of employers

While 60% (vs 55% globally) of Australian women say they would prefer to deal with issues like miscarriage, difficult pregnancies or menopause in private, 74% (vs 69% globally) say that, should they be experiencing one of these issues, they would personally welcome support from an employer to help them remain in the workplace, ranging from paid leave to flexibility or access to healthcare support. Notably, 71% (vs 67% globally) would like formal policies for difficult pregnancies, miscarriage or baby loss, and 67% (vs 62% globally) would like these for neurodivergent conditions. Of those that do have policies in place, the majority of Australians (80% vs 86% globally) say they are effective.

Yet while some policies are in place, the majority have never heard their employer talk about common issues affecting women, including menstruation (61% vs 56% globally), fertility challenges (68% vs 64% globally), and difficult pregnancies or miscarriage (65% vs 61% globally), and there remains considerable reticence about raising personal well-being issues with employers. For example, only 25% (vs 29% globally) would be comfortable raising fertility or miscarriage issues with a male line manager.

Menopause gap

In a sign of progress, the data suggests an exponential rise in knowledge of formal policies to address personal health and well-being issues such as menopause and health-related to menstruation. In 2023, when BSI published the world’s first workplace standard on accommodating menopause in the workplace, only 7% globally were aware of these policies within their organisation, compared with 47% of Australian women today (vs 44% globally). Yet today, 66% of women (vs 60% globally) say they have never heard their employer talk proactively about menopause support, and only 9% of Australian employers (vs 11% globally) regularly communicate about the available support. Only 25% of Australian women (vs 28% globally) said they would be comfortable discussing menopause with a male line manager, compared with 61% of Australian women (vs 60% globally) with a female manager. Overall, while there has been a surge in policy awareness, there is a clear need for leaders of firms to communicate more clearly about them.