AMP research has exposed a stark gender divide in retirement confidence, with women reporting significantly higher levels of worry than men.New research from AMP has revealed a sharp gender divide in how confident Australians feel about their retirement, with women significantly more worried and less likely to seek help than men.
Headline findings released earlier this year showed just 41 per cent of women feel financially confident about retirement, compared with 59 per cent of men.
The latest results have confirmed women report higher levels of worry across every measure, with 73 per cent concerned about having enough super for retirement, compared with 56 per cent of men.
Women are also more likely to fear they will not be able to afford their desired retirement lifestyle, at 71 per cent versus 53 per cent of men, while 51 per cent say they hold back on day-to-day spending for fear of running out of money in retirement, compared with 42 per cent of men.
Despite these concerns, 66 per cent of women say it is important to leave a financial legacy for future generations, compared with 57 per cent of men.
AMP said lower super balances, driven by pay gaps and time out of the workforce, continue to weigh on women’s confidence, but the research has also pointed to a significant knowledge and engagement gap.
Only 34 per cent of women understood the concept of compounding returns before age 40, compared with 61 per cent of men, while 55 per cent are confident in Australia’s superannuation system, compared with 71 per cent of men.
The findings also showed women are less likely to seek professional support, with just 26 per cent having sought financial advice for retirement, compared with 34 per cent of men.
Around 30 per cent of women do not know who their super is with or do not engage with their provider, compared with 23 per cent of men.
Relationship breakdown has been found to exacerbate the confidence gap, particularly for women in their 40s. Across all ages, only 36 per cent of single women feel financially confident about retirement, compared with 45 per cent of single men.
For separated or divorced women in their 40s, confidence drops to 21 per cent, compared with 50 per cent of men in the same situation. Among single women with children in their 40s, just 19 per cent feel confident, compared with 40 per cent of men.
AMP said the findings align with research by its deputy chief economist showing Australia’s gender gap in financial literacy is larger than in peer countries such as the US, Germany and the UK, with a statistically significant relationship between financial literacy and retirement savings.
AMP group executive for superannuation and investments, Melinda Howes, said the results highlighted the need for both structural reform and greater engagement.
“We cannot accept a future where Australian women remain more worried than men about their financial futures,” Howes said.
“Our research shows women are more anxious on every measure, and it’s no surprise given they retire with smaller super balances after years of pay gaps, part-time work and time out caring for others.
“Structural change is happening, from stronger pay-equity policies to reforms that help boost women’s super – but it’s not enough on its own.”
Howes said improving engagement with super was critical to lifting confidence.
“Women can take back control by engaging with their super, knowing their fund, checking their balance and investment options, and feeling confident to ask for help,” she said.
“The good news is help has never been more accessible. Many super funds, including AMP, now offer digital and phone-based financial advice at no extra cost.”
AMP deputy chief economist Diana Mousina said the confidence gap was a predictable outcome of long-standing disparities in financial literacy.
“The retirement confidence gap we’re seeing among women is the predictable result of a long-running financial literacy gap,” Mousina said.
“More than one in three Australian adults are financially illiterate and, worryingly, women consistently score lower than men – with Australia’s gender literacy gap larger than in many comparable countries.
“The encouraging part is that literacy is fixable – through better education in schools, workplace programs and the support super funds can provide.”
