Three in five women lack retirement confidence

New research commissioned by Colonial First State (CFS) has highlighted significant disparities between men and women when it comes to retirement preparedness and financial confidence.

The findings, based on a survey of 2250 Australians, revealed that more than three in five women (62%) feel they will be unable to achieve a comfortable retirement compared to 47% of men.

Only 34% of women felt prepared for retirement, compared to 53% of men.

Furthermore, only 45% of women were aware of what assets their superannuation is invested in, compared to 60% of men.

The research also highlighted the positive impact of financial advice on women's retirement confidence.

Women who receive advice were twice as likely to feel financially prepared for retirement (62%) compared to those who don't (28%). Moreover, 81% of women who received advice felt they were on track to reach their retirement goals, compared to 49% who don't.

CFS Superannuation chief executive Kelly Power said the findings highlighted the lack of confidence among women when it comes to achieving their retirement goals.

"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 said.

"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."

Additionally, the research found women were less likely to speak to their super fund or increase their super contributions if they were off track to achieving their goals.

"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," Power said.

"This is particularly beneficial for women who may have taken career breaks or worked part-time due to caregiving responsibilities, resulting in lower superannuation balances. By utilising catch-up contributions, they can boost their retirement savings and work towards achieving a more comfortable and financially secure retirement."