Qantas Super’s inaugural CSBA Retirement Confidence Index (RCI) shows that 63 per cent of Australians don’t have the confidence to retire comfortably. Women comprise most of those who don’t feel they are prepared for retirement.
Based on a survey of 1,025 retirees and pre-retirees, 30 per cent have little to no confidence in their superannuation savings, while 37 per cent have a high degree of confidence.
The average retirement rating stands at 5.2, with women coming in at 4.7 and men at 5.6, according to the 10-point index.
Michael Clancy, Qantas Super chief executive, said it's hard to say exactly why women are overrepresented in the lower confidence groups than men, but it is well-known that women are generally paid less than men, take bigger breaks from paid work, and tend to have lower average super balances.
Pre-retirees that lack confidence include non-owner housing occupiers, low income earners, 40-59-year-olds, and those with no major investments.
The survey found that people's confidence in retiring comfortably improved when they held investments outside of super, homeownership, and higher education. More than half of the participants felt that external factors such as the rising cost of living, regulation changes, and the US economy affected their ability to save for retirement.
Clancy said Australia has one of the best retirement systems in the world, however, that is not reflected in how Australians feel about their retirement savings. Qantas Super is trying to provoke a conversation about what member, super funds, and governments can do better. The results show that financial literacy needs to be improved so Australians are equipped with the knowledge to improve their situation.