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IWD 2017: What is the retirement story for women?

IWD 2017: What is the retirement story for women?

International Women’s Day is a good time for women to check their financial health to see how they are tracking and what they can do that might improve their financial wellbeing for their retirement.

Even if retirement feels a long time away, it’s important to start thinking about when you’d like to retire and the type of lifestyle you want in retirement. 

How much might you need to retire?

The CommBank Retire Ready Index is a comprehensive analysis of Australians’ retirement savings and resulting retirement incomes.

It sets out the percentage of the population aged 25-64 who are projected to have sufficient assets, including superannuation, personal wealth and Age Pension entitlements, to meet a 'comfortable' level of retirement.

The Association of Superannuation Funds Australia (ASFA) describes a ‘comfortable’ retirement as one where you can renovate your house, buy a new car and eat out regularly, as well as take an annual holiday.

It calculates that a single person would need around $43,000 a year in annual income, or $60,000 for a couple, to afford this lifestyle in retirement.

The gender gap

While one in two Australian households are expected to be retire ready, the gap widens when you compare males and females.

About 31% of single males are expected to be retire ready compared with 22% of single females1.

Factors for the discrepancy include disrupted working patterns, the pay gap and the need for women to hold more assets and make their income last longer because of their longer life expectancy.

Tips that might help

  • Salary sacrificing might be an option
  • Bringing all your super together into one fund can help to manage fees that you might be paying
  • Our retirement calculator helps you to estimate how much money you may need and how much you may have when you retire in just a few easy steps
  • Develop a retirement plan and talk to a financial planner about your retirement goals
  • Revise your household budget to see if there is any spare cash to possibly put away for retirement, using CommBank’s budget planner tool
  • Check the Australian Taxation Office (ATO) website for details about the latest contributions caps
  • Consider making an appointment to talk to a Commonwealth Financial Planner on how the changes to superannuation on 1 July 2017 might affect your retirement.

Women in Focus is enabling women to thrive in business by creating a community of women across Australian business and social sectors, helping them collaborate and connect to create opportunities, learn and share insights and expertise. Stay in touch to learn about the latest events and get inspiration to help you grow your business. 

1Source: CommBank Retire Ready Index.

Things you should know: This web page contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a financial planner before making a financial decision. Before you make a decision about your super, you should compare the costs, fees, risks and benefits of super funds. It makes sense to consider whether you can replace any insurance cover you may lose when you bring your accounts together, as well as any costs for withdrawing from other super funds and any investment or tax implications. This web page has been prepared by Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, (Commonwealth Financial Planning) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Commonwealth Financial Planners are representatives of Commonwealth Financial Planning. Information in this web page is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this web page, no liability is accepted by Commonwealth Financial Planning, its related entities, agents and employees for any loss arising from reliance on the information contained in the web page. The commentary provided from external companies that are not a member of the Commonwealth Bank of Australia Group of Companies (the CBA Group) does not represent an endorsement, recommendation, guarantee or advice in regard to any matter. Members of the CBA Group accept no liability for losses or damage arising from any reliance on external companies and their products, services and material.