Women need to take “extra care” of their retirement income, given that fewer people will be able to access pension entitlements in the future, according to an AMP-aligned adviser.
FMS Group director Christine Hornery said that going forward, the preservation age, retirement age and ability to access pension benefits is likely to lift, meaning women need to act earlier to have adequate funds for retirement.
“I believe there are women retiring today who are using Centrelink to subsidise their retirement and that just may not possible for as many people in the future,” Ms Hornery said.
Ms Hornery pointed to the Association of Superannuation Funds of Australia (ASFA) March 2014 update on the level and distribution of retirement savings which found that more than a third of women reported having no superannuation.
She said it was worrying that so many women did not “have a single cent in super” and were disengaged in the process.
“They have no money stashed away in superannuation for retirement whatsoever,” Ms Hornery said.
“The other disturbing thing is that many women are not engaged when it comes to their superannuation and, I believe, are only becoming less engaged.”
Ms Hornery said that women need to take control of their financial future and get advice about their retirement savings early on.
“My suggestion is to not just think about today – start thinking about what your future is going to look like,” Ms Hornery said.
“And then get financial advice. Talk to a professional and get some advice and strategy so that you can accumulate more funds towards retirement savings.”
“A product alone is simply not going to give that to you.”
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