Why so many Australian women feel unprepared for retirement and what you can do about it

A recent survey by Colonial First State (CFS) Superannuation highlights a troubling trend: many women in Australia feel uncertain about their retirement readiness.

The survey of 2,250 Australians revealed that 62 per cent of women feel they won’t be able to retire comfortably, compared to 47 per cent of men. Just 34 per cent of women feel fully prepared for life after work, versus 53 per cent of men.

These feelings of uncertainty are understandable, as women often face unique financial challenges that can make retirement planning more difficult. Career interruptions due to caregiving, lower pay, and longer life expectancies all contribute to smaller superannuation balances, leaving many women feeling less confident about their future.

CFS Chief Executive Kelly Power highlighted the issue, saying, “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.”

Despite these challenges, Power emphasised that women have options to take control of their financial futures.

“Adding a small amount to your superannuation each week can make a significant difference over time (and) even modest contributions can grow substantially with the power of compound interest,” she said.

“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.

“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.

“By utilising catch-up contributions, (women) can boost their retirement savings and work towards achieving a more comfortable and financially secure retirement.”

If you’ve found that your superannuation fund isn’t on track to cover the cost of a comfortable retirement, Chris Brycki, Founder and CEO of Stockspot, offers three simple strategies to help boost your super:

• Just get started in investing. Even if it means having money sit in a bank account, at least that is earning interest.
• Minimise the fees you are paying by shopping around and seeing what you are charged
• Look at the total returns being offered, make sure you are investing in something that offered a return or dividend and also offers growth in assets.

Sydney-based Wealth Coach Andrew Woodward, from The Investor’s Way, reassures soon-to-be retirees that there are ways to get back on track.

Woodward suggests that “if you are short of your asset goals” then “increase the amount you are putting into superannuation”.

“The best thing you can do while still working is increase the amount of money from your current income that you are investing or putting into superannuation,” Woodward says.

“Be sure you are taking advantage of the tax benefits for additional contributions to your superannuation, which can be done from pre or post tax income,” he adds.

“If you are able to divert some of your pre-tax income to superannuation you can accelerate the growth of your assets.”

Woodward advises that ” the simplest way to reduce what is required in retirement is to reassess your lifestyle and adjust your spending to align with what assets you have available to meet you expenses.”

-with AAP.