Age discrimination undermining retirement adequacy
Age discrimination is still occurring in the workforce and is impacting the ability of over-50s to accumulate sufficient retirement savings, according to new research released by the Financial Services Council (FSC).
The research, conducted for the FSC by Westfield Wright, found 28 per cent of older workers had experienced discrimination, with the most common instance being made redundant before other, younger workers.
It found that discrimination was most acute among middle-ranking managers earning the average Australian wage of $70,000 a year.
The research reports that over-50s earning under $80,000 a year are more than twice as likely to have experienced age-related discrimination as those earning more.
The research also suggested older workers were finding the going tough in the current economic environment, with some employers seeking to recruit younger staff.
It said this was a key concern for older workers, who were trying to save as much superannuation as they could before they retired.
"Close to 50 per cent of over 50-year olds said they were dissatisfied with the amount they had put aside for their retirement, with more than half of those feeling very concerned," it found.
Commenting on the results of the survey, FSC chief executive John Brogden said attitudes to older workers needed to change because Australia was facing an ageing population crisis.
"At current trends, by 2050 there will only be 2.7 working Australians for every citizen over 65," he said. "Without action, this will have serious implications on the quality of life of every Australian."
Recommended for you
At the halfway point of the year, consolidation pressures continue to drive financial services M&A with three areas identified as targets for asset and wealth managers, according to PwC’s mid-year outlook.
With advisers expressing a reluctance to invest in cryptocurrency, advised clients are tending to have a smaller allocation to the asset than their unadvised peers.
After surviving significant evolutions of the Australian financial advice industry, The Advisers Association is now celebrating a century of advocating for advisers.
ASIC is calling on licensees to review their client onboarding practices to avoid vulnerabilities associated with share sale fraud, noting particular concerns in the use of white labelling services.
