Women to rely on aged pensions
Most Australian women will have to rely on aged pensions when they retire because their superannuation fund balances are inadequate, according to a university study.
Most Australian women will have to rely on aged pensions when they retire because their superannuation fund balances are inadequate, according to a university study.
Professor Linda Rosenman, of the University of Queensland's School of Social Work and Social Policy, says a survey of 735 women shows that only a handful of women are topping up their superannuation funds beyond compulsory employer contribution.
"The compulsory nature of superannuation scheme membership may be giving women a 'false sense of security' about their futures," Prof Rosenman says.
The study found that 97 per cent of full-time workers and 87 per cent of part-time workers were in a super scheme, compared with 55 per cent and 19 per cent respec-tively 10 years ago.
"Our study found that while most working Australian women were now covered by a superannuation scheme compared with 10 years ago, this was no cause for compla-cency," Prof Rosenman says.
"Given women's low earnings and discontinuous participation in the labour force, the potential for the majority of women to be self-supporting through their own superan-nuation and investments in retirement seems low."
Women who only had employer super would have accrued relatively little for retire-ment, despite having been members of super schemes, she said.
The survey, which was a follow-up study to a similar one conducted in 1998, analysed women's attitudes towards superannuation and financial planning. It was funded by AMP and government agencies, including the Australian Taxation Office.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
