Particularly concerning is that 62% of women feel unable to achieve a comfortable retirement compared to less than half (47%) of the men surveyed. Moreover, financial literacy and awareness about superannuation investments also differ by gender. Only 45% of women reported understanding their superannuation investment holdings, while 60% of men indicated awareness.
The survey highlights the positive influence of financial advice on retirement confidence. Women receiving financial advice were notably more optimistic about their retirement prospects, with 62% feeling prepared compared to a mere 28% of their unadvised counterparts. Additionally, 81% of women with professional guidance felt on track to meet their retirement goals, a sentiment shared by less than half (49%) of the unadvised.
Despite the apparent benefits of financial guidance, women are generally less inclined to proactively engage with their super funds or increase their contributions, even when aware of falling short of their retirement targets. CFS superannuation chief executive Kelly Power emphasizes the importance of tailored financial advice for empowering women in managing their financial and retirement plans. She highlights the value of personalized advice, noting the availability of more affordable options, including digital advice tools, to support women in planning their golden years.
Power also underscores the importance of educating women about their super options, pointing out the opportunity for catch-up contributions. These special provisions allow individuals to make additional super payments beyond annual caps, compensating for previous years' shortfalls. This option is particularly beneficial for women who have taken career breaks or worked part-time due to caregiving duties, traditionally resulting in lower super balances. Leveraging such contributions can substantially improve financial security in retirement.
