A new report for the Super Members Council found single women and renters were amongst the older women most at risk of retirement poverty. (Source: Eamon Gallagher\/Getty) <\/p>\n
Australia is staring down the barrel of a “crisis”<\/a> of older women entering retirement in poverty, as half of our population finishes work with significantly less superannuation<\/a>. While having kids is a large contributor to the gender super gap<\/a>, a new report has found common later-in-life events are \u201cdramatically\u201d eroding retirement savings.<\/p>\n Separation, unpaid caregiving<\/a> for older relatives and family violence are significantly more likely to force women into early retirement<\/a> or part-time work, the report by Impact Economics and Policy for the Super Members Council found. These life events could result in women having up to $95,000 less in superannuation<\/a>.<\/p>\n Super Members Council CEO Misha Schubert said the report was a \u201cwakeup call\u201d for policymakers and called for a \u201cbigger and bolder approach\u201d to be taken.<\/p>\n RELATED<\/p>\n \u201cAustralia has made important strides in recent years on the gaps in pay, super and workforce participation, but this research shines a spotlight on the need for further bold reforms to ensure our retirement system truly works for women \u2013 especially low-income women,\u201d she said.<\/p>\n \u201cWithout urgent action, generations of Australia\u2019s lowest-paid women risk poverty in retirement.\u201d<\/p>\n The report found women were nearly 1.5 times more likely than men to be forced into early retirement<\/a> between the ages of 55 and 64, due to the health of a family member or inflexible work arrangements.<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/p>\n One in seven women aged 45 to 65 faced primary caregiving demands<\/a>, such as for a sick partner, a family member with a disability or an elderly parent. Women were three times more likely to have these demands than men.<\/p>\n A rising number of single older women are now renting<\/a>, with the report finding nearly 60 per cent of older female renters already lived below the poverty line.<\/p>\n Women were found to be at greater risk of giving up home ownership after a separation or divorce. They then face a higher risk of falling into poverty if they don\u2019t repartner.<\/p>\n Older single women had a higher chance of living in poverty, with more than two in five aged 80 or older living in poverty.<\/p>\n About a quarter of women aged 60 or older were found to be living in poverty, compared to 21 per cent of men.<\/p>\n The government has said it is committed to closing the gap by reforming superannuation and taxation systems.<\/p>\n From July 1, superannuation is now available on government paid parental leave<\/a>. That means parents receive an extra 12 per cent contribution to their super fund.<\/p>\n The average super balance<\/a> of men aged 60 to 64 was $395,852, according to the latest Australian Taxation Office statistics.<\/p>\n For women in the same age bracket, the median balance was $313,360. That represents an $82,492 gap.<\/p>\n To put that into perspective, the Association of Superannuation Funds of Australia (ASFA) says singles would need $595,000 in superannuation to achieve a comfortable retirement. Couples would need $690,000.<\/p>\n These figures are based on homeowners, with the retirement gap compounding if people are renters<\/a>.<\/p>\n To fund just a modest retirement, single renters would need $340,000 in superannuation, and couples would need $385,000.<\/p>\n That’s more than triple the $100,000 needed for single and couple homeowners alike for a modest lifestyle.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n