The latest industry research has shown women lack confidence in comparison to men with respect to various aspects of retirement, including financial confidence and preparedness.
The Colonial First State (CFS)-commissioned study found almost two-thirds of women, 63 per cent, believe they will be unable to achieve a comfortable lifestyle in retirement, while 47 per cent of men expressed the same sentiment.
Further, 34 per cent of women who participated in the survey said they were prepared for retirement compared to 53 per cent of men who responded in this manner.
Women were also found to be less aware about their retirement savings, with 45 per cent saying they knew the assets in which their superannuation was invested, whereas 60 per cent of men had this knowledge.
On a positive note for the industry, the analysis indicated women who receive financial advice noticeably benefit from the process, reflected in the statistics that 62 per cent of this cohort feel financially prepared for retirement and 81 per cent believe they are on track to reach their retirement goals.
CFS superannuation chief executive Kelly Power recognised the data indicates an alarming characteristic of the connection women have with their super funds and suggested there is a ready-made solution.
“We know that most women are unaware of what assets their super is invested in, which suggests lower levels of engagement with their super. 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 noted.
“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.”
She recommended females consider making additional contributions to their retirement savings balances to improve their situation and engagement with their super fund.
“Adding a small amount to your superannuation each week can make a significant difference over time. Even modest contributions can grow substantially with the power of compound interest,” she explained.
The survey was conducted among 2250 Australians.
