Women at risk of poverty after retirement
Many women will not have enough money to live on by the time they hit retirement age, leaving many single women on the poverty line, new data has revealed.
The average Australian woman earns 18 per cent less than a man, which over a lifetime can add up to a $1-million shortfall.
“We may have seen the back of one global financial crisis, but I firmly believe the new GFC is going to be the girls financial crisis,” Nicole Pendersen-McKinnon from the Money Mentor Way said.
“We earn less, we typically still take the career breaks to raise children, so at the end of our working lives we have a smaller pot.”
On average, women live four years longer than men yet accumulate half the super.
Single women aged 60 are on the highest poverty rate in the country.
“A man is not a plan, you cannot rely on a man support you because they may not have enough super either,” Ms Pendersen-McKinnon said.
Madeleine Stewart started saving money the moment she left university.
She used the equity in her first unit to buy a second unit and now at 26 years old she has three to her name.
“Although I haven’t sold anything yet, I can see how I will make money for the future,” she said.
“Plus you get the rental returns and have a passive income sitting there.”
Experts say there is another very simple and achievable way women can bridge the gap in retirement.
“If women actually paid in just two per cent extra by salary sacrifice, so it doesn't cost that much, they should actually fix the entire problem,” Ms Pendersen-McKinnon said.
When it comes to superannuation, the advice is that if you are not receiving an average return of 9 per cent, change super funds.
