Jennifer McSpadden
Women are growing increasingly pessimistic about their retirement prospects, as the gap between expected and required income for a comfortable retirement widens to a median of $1,500 per month in 2024. By comparison, men expect a lower shortfall of $1,100 per month, according to the latest findings from Brighter Super and Investment Trends 2024 Retirement Income Report.
The report reveals a growing gender disparity in retirement preparedness. With 71% of pre-retiree women now anticipating a funding shortfall in retirement, up significantly from 62% in 2023. In contrast, 54% of men expect a shortfall, up from 48% the previous year.
A gendered retirement challenge
The latest data underscores the persistent financial challenges women face in securing a comfortable retirement. In 2023, the expected median funding gap stood at $1,200 per month for women and $1,000 for men.
To mark International Women’s Day, Brighter Super and Investment Trends are releasing an in-depth gender analysis of retirement preparedness, based on exclusive findings from the 2024 Retirement Income Report.
Women’s retirement preparedness is a concern
The survey revealed that women feel less prepared for retirement than men and have more retirement concerns:
- Level of preparedness: When asked how well prepared they feel for retirement, 78% of women don’t feel prepared, compared to 64% of men.
- Lower engagement: Women are more likely to say they haven’t thought about it when asked about how they intend to close the retirement funding gap. 20% of pre-retiree women said so, compared to 13% of men.
- Different strategies: Among those who had thought about it, women were more likely to make additional super contributions to close their funding gap or reduce spending, whereas men were more likely to delay retirement or move to investments with higher growth.
- Limited awareness of super products: 66% of female pre-retirees were not sure if their main super fund offered retirement income products, compared to 55% of male pre-retirees.
- Uncertainty at preservation age: 38% of female retirees were unsure about their next steps upon reaching the preservation age of 60, compared to 29% of male pre-retirees.
- Retirement timing: Women were more likely to retire earlier than planned, with 51% of female retirees reporting early retirement, compared to 43% of men.
Bridging the retirement preparedness gap
Brighter Super Head of Retirement Jennifer McSpadden said the findings reinforce that women are lagging in retirement preparedness but have opportunities to take proactive steps to secure their financial future.
“Not contributing more to super was by far the most common regret among retirees, with 38% expressing this concern,” McSpadden said.