Comfortable retirement income gender gap widens

Based on research from 2024, women’s retirement confidence has dropped in alignment with the gap between expected and required income for a comfortable retirement having expanded to a median of $1,500 per month.

According to the Brighter Super and Investment Trends 2024 Retirement Income Report, that same gap for men was only $1,100 a month reflecting a significant “gender disparity in retirement preparedness”, given the gap increased by $300 for women and only $100 for men from the previous year.

The survey also found 71 per cent of women preparing to retire were expecting to navigate a funding “shortfall” in retirement, up from 62 per cent in 2023; this is compared to only 54 per cent of men expecting the same, up from 48 per cent in 2023 also. Only 22 per cent of women respondents said they felt prepared for retirement compared to 36 per cent of men, and women were more likely to retire earlier than planned (51 per cent compared to 43 per cent of men).

Brighter Super’s Head of Retirement, Jennifer McSpadden, said while the research suggested women were “lagging in retirement preparedness”, they had taken “proactive steps to secure their financial future”, such as engaging with financial advice.

“Not contributing more to super was by far the most common regret among retirees, with 38% expressing this concern,” McSpadden said.

“The survey found that taking action after seeking guidance was a key driver of retirement preparedness. At Brighter Super we are committed to bridging the advice gap to ensure more women receive the guidance they need.’’

The Retirement Readiness Index (RRI) was also developed as part of the Brighter Super and Investment Trends research, measuring responses across four aspects:

• How pre-retirees rate their super fund’s suitability for retirement
• Pre-retirees’ confidence in having enough funds for retirement
• Retirees’ satisfaction with their super fund, and
• How well prepared they feel for retirement.

Australian women over the age of 40 were found to have an RRI of 51, compared to 56 for men, indicating that they were less confident about retirement overall.