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Westpac retirement report backs need for ASIC Women's money tool kit

25 May 2015

25 Years More

The average 60-year-old Australian woman may need to work an extra 15 years in order to retire with the same superannuation account balance as her male counterpart, according to the 2015 Westpac Women & Retirement Readiness Report.

The facts include: $145,000 gap between median superannuation account balance for women and men, aged 60 to 64, in Australia. 84% of Australian women surveyed do not feel adequately prepared for retirement and almost nine in 10 Australian women (89%) are worried about maintaining their standard of living during retirement.

ASIC recently launched a ‘Women’s Money Toolkit’, a free online resource designed to help Australian women manage their finances, make money decisions at key life stages and enhance their financial wellbeing.

The toolkit was developed in response to the particular needs of women who face financial issues and challenges as a result of factors such as their greater likelihood of variable workforce participation, longer life expectancy and on average lower superannuation balances.

There is also a significant amount of research on finances and relationships and the various issues women can face within relationships,including relationship breakdown.The tool kit offrers strategies for women and their finances in this area as well.

In our 2011 Westpac Women's Financial Health Report we found, among a number of factors, that only 20% of women feel very confident that they have a good financial plan for the future. The ASIC tool kit can help put some structure around how women might plan for various life and age stages.

Our 2012 Westpac Women's Finances by Generation uncovered some interesting factors differentiating how various generations of women Gen Y, Gen X and Baby Boomers approach life and age stages.

For example, 53% of Gen Y women felt to some extent they needed to delay starting a family due to financial pressures and 53% of Gen Y women would go back to work following the birth of a child to maintain career progression. Gen X and Baby Boomers saw these as less important.

Gen Y were also among the biggest savers, with 18% of Gen Y saving more than 20% of their income per month and 29% of Gen Y’s already owned their own home.

If you're interested in your financial health, the tool kit covers the majority of issues you may run across and you can personalise it to suit where you are at in your life.