Women continue to be at a significant disadvantage to their male counterparts when it comes to superannuation, according to financial planning firm Bridges.
Bridges technical services executive Helen Gibson said the so-called “savings gap” for women is nearly double that for men.
“Females aged between 45 and 49 need to contribute an additional 17 per cent of earnings to close the savings gap, whereas males in the same age bracket need only six per cent extra,” she said.
Gibson said that this was despite the fact that women would spend at least 22 years in retirement compared to only 18 for men, meaning that a woman’s superannuation will have to stretch much further.
“In addition, the current high divorce rate means many women will enter retirement years entirely dependent on their own resources, without the support of a financial planner,” she said.
Gibson said that in circumstances where women could not rely on their spouse, partner or Government to support them during retirement, it was essential to take a more proactive role in superannuation.
“Accumulating sufficient wealth for retirement is achievable for women who take an active interest in superannuation, particularly from a young age,” she said. “For example there are a number of incentives provided by the Federal Government for women who want to boost their retirement savings, but not enough women are taking advantage of these opportunities.”
Gibson said the nine per cent employer contribution was a good start in terms of superannuation but was not sufficient for women to make up the savings shortfall.
“The best option for women is to make regular voluntary contributions to compensate for less time spent in the workforce and lower average earnings,” she said.
