According to AMP’s ‘Retirement Confidence Pulse’, only 41 per cent of women are financially confident about retirement, compared with 59 per cent of men. These AMP findings confirm also that women report higher levels of worry across every measure.
While 56 per cent of men are worried about having enough super for retirement, this is significantly better than the 73 per cent of women that feel the same. Similarly, 71 per cent of women fear they won’t be able to afford their desired retirement lifestyle, compared with 53 per cent of men, and 51 per cent of women hold back day-today spending for fear of running out of money, compared to 42 per cent of men.
“Despite these concerns 66 per cent of women say it’s important to leave a financial legacy for future generations, compared to 57 per cent of men,” AMP added.
“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.”
AMP also highlights that women are generally less likely to be engaged or knowledgeable about their super.
Their numbers show that only 34 per cent of women understand or understood the concept of compounding returns before age 40, compared with 60 per cent of men. Only 26 per cent of women have sought financial advice for retirement, though that number is not much higher for men (34 per cent).
One factor that greatly impacts women’s confidence going into retirement is divorce and separation. Despite many prevalent stereotypes of women coming off better in divorce, only 21 per cent of divorced or separated women over 40 are confident about their retirement security, compared with 50 per cent of men in the same demographic.
“This shows how relationship breakdown and caring responsibilities is compounding the gender confidence divide, particularly in the 40s – the ‘sandwich generation’ age group,” AMP said.
Though these numbers may seem grim, Howes highlighted that structural change is happening, including better pay equality policies to reforms that boost women’s super.
“Women can take back control by engaging with their super, knowing their fund, checking their balance and investment options, and feeling confident to ask for help,” she said.
“These are areas where women still lag men, an unfortunate hangover from a bygone era where men typically managed the finances.”
Howes added: “The good news is help has never been more accessible. Many super funds, including AMP, now offer digital and phone-based financial advice at no extra cost.
“We encourage any woman who feels uncertain to start by contacting her fund, exploring the support available and building knowledge. With the right information and a few simple steps, they can take control and feel more confident.”
