Member News – Winter 2014
Women facing huge savings gap
Women are way behind in their retirement savings according to research by Rice Warner, with a massive savings gap for working-age Australian women of $383 billion.
Commissioned by Women in Super, the research also shows that women are not currently in a position to contribute more towards their retirement savings either.
While men aren’t off the hook, the savings projections are much worse for women, reflecting the income differences between the genders and time spent out of the workforce caring for children, with the research also aimed at identifying underlying issues and levels of engagement.
There were approximately 1,500 women polled for the survey, which found the main reason women fail to make voluntary contributions is simply that they cannot afford it. 60% said affordability was a barrier and that any spare money was being directed to paying off debt.
The survey also showed that women aren’t particularly ‘engaged’ with their super – which means actively managing it – and that while older women are more likely to be engaged than their younger counterparts, the majority still don’t know what their retirement needs are. Another contradiction is that while the majority actively check their super balances each year, only 40% know what investment option their savings are in.
Is there a solution?
While there needs to be a range of measures put in place to help close the gap, the clear message is to take control. Super savings are yours to support you in retirement, and there are plenty of things you can do to manage your nest egg. From using a range of tools and calculators available here, to managing your investment options through MemberAccess or setting up a regular voluntary contribution.
Of course, you may want some help to determine which options are right for your circumstances, which is where a Money Coach can help.