Research commissioned by Colonial First State (CFS) has revealed that just 34 per cent of women feel prepared for retirement, compared with 53 per cent of men.
Based on a survey of 2,250 Australians, 62 per cent of women feel they will be unable to achieve a comfortable retirement, while less than half (47 per cent) of the men reported feeling the same.
Notably, fewer than half (45 per cent) of the women said they were aware of what assets their superannuation is invested in, compared with six in 10 (60 per cent) men.
However, access to financial advice proved a significant factor when it comes to retirement confidence as 62 per cent of women receiving advice reported feeling prepared for retirement, compared with just 28 per cent of women who don’t.
Furthermore, 81 per cent of advised women said they felt they were on track to reach their retirement goals, while less than half (49 per cent) of unadvised women could say the same.
Despite the benefits of advice when it comes to retirement planning, CFS said the research found women are less likely to speak to their super fund or increase their super contributions if they are off track in achieving their goals.
CFS superannuation chief executive Kelly Power said that personalised financial advice is important for empowering women to take control of their finances and retirement planning.
“It’s crucial that any efforts to help women build their financial confidence consider their unique life decisions. There’s no one-size-fits-all solution, just as there isn’t a single path that all women follow in life,” Power said.
“That’s why financial advice is so valuable. There are now more affordable advice options available; women can sit down with a professional adviser or use a digital advice tool to plan their retirement and ultimately receive the advice that empowers them.”
Power further suggested that by educating women about their super through advice and guidance, they can take advantage of opportunities to build a better retirement.
“Many women may not realise that later in life, when they are in a better financial position, the superannuation system allows them to make catch-up contributions,” she said.
“These contributions mean you can make additional payments into your super fund beyond the standard annual cap to compensate for any shortfalls in previous years.
“This is particularly beneficial for women who may have taken career breaks or worked part-time due to caregiving responsibilities, resulting in lower superannuation balances. By utilising catch-up contributions, they can boost their retirement savings and work towards achieving a more comfortable and financially secure retirement.”
