Recent data revealed through AMP’s Retirement Confidence Pulse showed that a noticeable gender-fuelled retirement gap has formed, with low levels of engagement with superannuation driving a lack of confidence among women.
“We cannot accept a future where Australian women remain more worried than men about their financial futures,” said Melinda Howes, AMP’s group executive, superannuation and investment.
“Our research shows women are more anxious on every measure, and 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.”
Some of the stark numbers include 71 per cent of women fearing they won’t be able to afford their retirement, only 34 per cent understanding the concept of compounding returns before the age of 40 and only 26 per cent having sought financial advice.
“The retirement confidence gap we’re seeing among women is the predictable result of a long-running financial literacy gap,” said Diana Mousina, AMP’s deputy chief economist.
“More than one in three Australian adults are financially illiterate and, worryingly, women consistently score lower than men – with Australia’s gender literacy gap larger than in many comparable countries.”
This proves to be even bigger issue when considering some studies have highlighted that women are more likely to be forced into retirement early, with BSI’s 2025 Lifting the Second Glass Ceiling finding that 31 per cent of women expect to retire earlier than expected, with 23 per cent saying they believe caring for family, especially elderly parents, would be a barrier to them remaining in the workforce.
One obvious way to lift confidence is by creating greater accessibility to advice for women. As highlighted by the Financial Advice Association Australia’s (FAAA) Value of Advice Index, advice affords people confidence after leaving the workforce, with 88 per cent of advised Australians saying they felt they had enough money for retirement.
“The encouraging part is that literacy is fixable – through better education in schools, workplace programs and the support super funds can provide,” Mousina added.
“Every time we help a woman understand concepts like compound interest, risk and diversification, we’re giving her the tools to build wealth, independence and real confidence.”
According to AMP, Women can take simple, practical steps now to improve their retirement outlook. Checking and consolidating super accounts, understanding fees and investments, and seeking low-cost advice early — particularly before major life changes — can help build confidence and improve long-term outcomes.
