Women are less confident than men that they will have a comfortable retirement, with only 34 per cent feeling prepared for life after work.

A survey of 2250 Australians revealed that more than three in five women (62 per cent) felt they would be unable to achieve a comfortable retirement compared to 47 per cent of men.

The survey, conducted by Colonial First State (CFS) Superannuation found only 34 per cent of women felt prepared for retirement, compared to 53 per cent of men.

Only 45 per cent of women were aware of what assets their superannuation was invested in, compared to 60 per cent of men.

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

“We know that most women are unaware of what assets their super is invested in, which suggests lower levels of engagement with their super,” she said.

“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.”

Financial advice had a positive impact on women’s retirement confidence, with those who received advice twice as likely to feel more prepared for retirement than those that don’t.

Ms Power said women should be mindful that their super is their money and encouraged them to become actively involved in how it is managed.

“Adding a small amount to your superannuation each week can make a significant difference over time (and) even modest contributions can grow substantially with the power of compound interest,” she said.

“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.”

This can be particularly helpful for women who may have taken career breaks or worked part-time due to caregiving responsibilities, which often results in lower superannuation balances.

“By utilising catch-up contributions, (women) can boost their retirement savings and work towards achieving a more comfortable and financially secure retirement,” Ms Power said.

Maeve Bannister
(Australian Associated Press)