AMP’s Melinda Howes has urged women to take back control by engaging with their super. (Source: Jane Dempster/Getty)
There is a sharp divide in how financially confident Australians are feeling about their golden years in retirement. Women are significantly more worried about retirement than men, and with persistent gender and superannuation gaps, it’s not hard to see why.
Roughly seven in 10 women are worried about having enough super for their retirement, according to new findings from AMP. That’s compared to 56 per cent of men.
Women are retiring with far less superannuation, with the latest Australian Taxation Office (ATO) data showing men aged 60 to 64 had an average balance of $395,852, compared to women in the same age bracket with $313,360. That’s a $82,492 gap.
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AMP group executive of superannuation and investments, Melinda Howes, said women were found to be more anxious than men on every measure.
“It’s no surprise given they retire with smaller super balances after years of pay gaps, part-time work and time out caring for others,” she said.
“Structural change is happening, from stronger pay-equity policies to reforms that help boost women’s super, but it’s not enough on its own.”
The super gap becomes more noticeable in a person’s 30s onwards, with men aged 30 to 34 having an average balance of $55,690, compared to women with $46,586.
Last year, the government introduced superannuation on parental leave payments, which ASFA estimates could lead to $7,200 more at retirement for a woman taking 24 weeks, rising to $7,800 when the scheme is extended to 26 weeks.
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AMP’s research, based on a survey of 2,000 Aussies, revealed a stark gender retirement confidence divide, finding:
41 per cent of women were financially worried about having enough super for retirement, compared to 56 per cent of men
71 per cent of women fear they won’t be able to afford their desired retirement lifestyle, compared to 53 per cent of men
51 per cent of women hold back on day-to-day spending for fear of running out of money in retirement, compared to 42 per cent of men
Divorce and separation were found to increase stress levels over retirement even further.
Howes encouraged women to engage with their fund and see what support was available.
“Women can take back control by engaging with their super, knowing their fund, checking their balance and investment options, and feeling confident to ask for help,” she said.