How the pressure to “have it all” is hurting women in retirement - Women's Agenda

How the pressure to “have it all” is hurting women in retirement

The average working Australian mum is 95% less likely to retire with comfortable levels of savings than the average working Australian male, new data has shown.

REST Industry Super has found that the overwhelming majority of Australian mums are experiencing financial instability in retirement. The data also found that for many of these women, this economic disadvantage comes as a result of a lifetime of feeling pressured to be a “super mum” – a mother, an employee, a breadwinner, and someone who supports or runs a household.

80% of Australian mums said they felt this pressure to be a super mum, and 63% of these women said this pressure to uphold the family prevents them from topping up their own super savings. Years of this pressure then leads to inadequate retirement savings for so many Australianmums.

The majority of women surveyed cited their focus on family pressures and family expenses as the key reason they could not save more during their working lives.

In fact, 10% of Australian mums say the reason they could not save effectively for retirement is because they spent a lifetime being held back by guilt associated with taking money away from the family budget for their own super.

Unfortunately, while a major element of this relates to the desire to fully support their children financially, themajority of Australian mums say they will turn back to their children first if they struggle for money in retirement.

Equally, many survey respondents currently support their own retired mothers. And for many of them, this has a negative psychological impact – 35% of women said this compounds their anxiety about spending money.

An alarmingly 92% of Australian mums surveyed said they do not feel secure about their financial future – but despite the significant majority of women feeling worried about their finances, women are still reluctant to discuss retirement savings and super with their families. In fact, the average Australian mum spends almost as much time talking about TV shows with their families as they do finances.

“The Super Mum Index affirms how the common pressure among Aussie women with children to be able to ‘do it all’ impacts on how often and how seriously they are able to consider their financial position later in life. Given the clear focus that Aussie women place on their lovedones’ wellbeing, it is worth turning their attention more consciously towards their retirement savings, for the benefit of their own futures, and their children’s futures,” REST General Manager for Brand, Marketing and Communication said.

The combination of pressure to be a super mum and guilt about supporting dependents – both children and elderly parents – leads to substantial economic disadvantage for Australian working mums. So how can we fix it?

REST Super has developed a number of suggestions based on the data collected. Here are the 8 tips that will help you overcome the gender super gap.

  1. Try and contribute small amounts to your super regularly, on top of your compulsory contribution. Even just the cost of one coffee each day will make a huge difference to your super balance in the long run. Take advantage of a pay rise by making extra contributions when you receive them – this way, you are less likely to miss the extra money but it will add up and be useful in the long run.
  2. Make a plan. REST Super advises women to think about exactly how they want their retirement to look, and then work backwards. Figure out exactly how much you’ll need in order to fund the lifestyle you want, and then make steady contributions over time that will allow you to reach that goal.
  3. Streamline your super. Many Australians still have multiple super funds, which means multiple fees. Avoid wasting your contributions on fees by combining all your super accounts into one!
  4. Talk about it. REST Super also advises women to broach the topic of retirement finances and super more regularly, both with friends and family.
  5. Prepare for career breaks by contributing extra to super in the lead up to taking time out of the workforce. If you are leaving the workforce for a time, try and make personal contributions to your super balance for a period of time before you do so, to try and balance out your super in the long run.
  6. Work with your partner on super. Consider the option of having your spouse or partner make contributions to your super on your behalf, particularly if you are taking time out of the workforce.
  7. Ask an expert. If you’re not sure about anything super-wise, always ask a financial planner.

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