Female clients retiring earlier, and not by choice

Data revealed in BSI’s 2025 Lifting the Second Glass Ceiling found that many Australian women are expecting to retire early at 31 per cent. This is compared with 21 per cent globally. More alarmingly, fewer than four in 10 women (38 per cent) believe that the gender pay gap will be closed in their lifetime, with a further 69 per cent highlighting the pay gap as a core reason for retiring early.

Speaking to ifa, Nicola Beswick, founder and managing principal at White Rabbit Advisory, highlighted that generally, women suffer stark inequalities in retirement outcomes, shaking confidence.

“Many women who are now in the stage to be planning for retirement may have been affected by the gender pay gap through their working life and may have taken breaks in their career for caring responsibilities,” she said.

The issue of caregiving is also highlighted in BSI’s data, with 23 per cent of Australian women surveyed stating they believe caring for family, especially elderly parents, would be a barrier to them remaining in the workforce.

Beswick also highlighted that because women generally live longer than men, their balance needs to be able to stretch further, a challenge considering many are likely to have worked in careers impacted by the pay gap.

As emphasised by BSI data, this push to an early, potentially unstable retirement is often not a woman’s choice, with 32 per cent of Australian women feeling compelled by poor physical health, 23 per cent due to difficulties experienced during menopause and 14 per cent because of the pay gap.

“Women’s confidence about their prospects at work are in dramatic decline,” said Kate Field, global head health, safety and wellbeing at BSI.

“There is an urgent need for intervention with a true culture of care; employers must take a holistic view of the experiences that shape women’s working lives and respond to them.”

Charlene Loo, ANZ managing director at BSI, echoed this sentiment.

“Policymakers and employers can fast track change by proactively removing barriers to the retention of experienced women, such as financial inequalities and support for those seeking to balance health issues and family life with work,” Loo said.

From the adviser’s perspective, Beswick highlighted to ifa that good, empathetic financial planning can also help women feel more secure if they are made to leave the workforce earlier than expected.

“Women tend to prefer working with other women, especially in areas where there is a lot of uncertainty, and they want to be educated in a way that engages them rather than just being talked at,” she said.

Beswick added: “Advisers who provide that extra level of support and education can make a huge difference in helping women feel more secure about their finances and their future.”