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.
