Advised women more prepared for retirement: Research

According to Colonial First State (CFS) research released ahead of International Women’s Day, 44 per cent of Australian women admit they are financially unprepared for retirement, with 25 per cent feeling extremely unprepared.

The research, which is based on a survey of 2,247 Australians, found that 31 per cent of Australian men feel unprepared and just 15 per cent feel extremely unprepared.

CFS said the results shifted significantly when accounting for Australians who have engaged with financial advice.

More than two-thirds (67 per cent) of women who receive advice have a financial strategy in place, compared with 24 per cent of women who do not have an adviser.

Similarly, the proportion of women who feel financially prepared for retirement grows to 61 per cent among those that receive advice and drops to 20 per cent among those that don’t.

Kelly Power, chief executive of superannuation at CFS, said financial literacy can improve confidence and retirement preparedness among women.

“Our research found that one in three women admit they have little to no understanding about super, investments and retirement savings products,” Power said.

“We know that financial literacy, engagement with your super fund, and seeking advice have a major impact on improving women’s financial confidence.”

According to the research, younger women are turning to their super funds to improve their financial literacy and seek advice, with 70 per cent of women aged 25 to 29 saying they are interested in getting financial advice and paying for it with the funds in their super.

“One in three women who have never received advice said they don’t seek any guidance about their finances, from any sources,” Power said.

“Engaging with your super fund is an important first step towards improving your financial literacy and building confidence about retirement.

“CFS is committed to improving the financial confidence of Australian women by not only raising awareness of these issues but outlining some of the simple steps women can take to boost their confidence and take control of their financial future.”

CFS added that financial advice can be “hugely beneficial” to the large number of women that have never made plans for their financial future, don’t set financial goals, and don’t keep to a set budget.

“We know that women who receive advice are far more confident and far more prepared for retirement,” it said.