Women’s low financial confidence extends to | Australian Markets

Additional analysis, this time by Colonial First State (CFS), has indicated that low financial confidence reported by girls additionally extends to superannuation and retirement ‘preparedness’. 

The survey of 2,250 Australians discovered that 62 per cent of girls respondents felt they weren’t going to have the ability to obtain a snug retirement, in comparison with 47 per cent of males. Equally, 34 per cent of girls felt ready for retirement in comparison with 53 per cent of males.

Whereas solely 45 per cent of girls respondents mentioned they knew what investments their superannuation has been put in direction of in comparison with 60 per cent of males, the survey additionally showcased the confidence-lifting impact of financial advice on girls’s views of their retirement.

Ladies who have interaction with financial advice had been more than twice as more likely to really feel financially ready for retirement (62 per cent) than those that haven’t (28 per cent). Equally, simply over 80 per cent of girls who’ve a financial adviser felt ‘on track’ to realize their retirement objectives, in comparison with 49 per cent who don’t.

“We know that most women are unaware of what assets their super is invested in, which suggests lower levels of engagement with their super. 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,” CFS’ superannuation chief govt, Kelly Energy, mentioned.

“That’s why financial advice is so valuable. There are now more affordable advice options available; women can sit down with a professional adviser or use a digital advice tool to plan their retirement and ultimately receive the advice that empowers them.”

The analysis additionally prompt that if girls felt ‘off track’ to reaching their retirement objectives, they had been much less more likely to seek the advice of their tremendous fund or contribute more to their tremendous.

“Adding a small amount to your superannuation each week can make a significant difference over time. Even modest contributions can grow substantially with the power of compound interest,” Energy mentioned.

“Many ladies might not realise that later in life, when they’re in a higher financial place, the superannuation system permits them to make catch-up contributions. These contributions imply you may make further funds into your tremendous fund past the usual annual cap to compensate for any shortfalls in earlier years.

“This is particularly beneficial for women who may have taken career breaks or worked part-time due to caregiving responsibilities, resulting in lower superannuation balances. By utilising catch-up contributions, they can boost their retirement savings and work towards achieving a more comfortable and financially secure retirement.”