Why Aussie women fear running out of money in retirement

Two in three Aussie women preparing for retirement are worried about running out of money after leaving the workforce, new research from HESTA shows.

More than 60% of the 1800 pre-retirement health, aged care, and community services workers surveyed were worried about health issues or medical expenses, while half were concerned about not being able to afford their desired lifestyle.

"The research is showing that women need better support through their journey to retirement," HESTA CEO Debby Blakey told Money.

According to the Super Members Council, 700,000 Australians aged 65 and older who aren't working full-time still have their super in accumulation phase.

This could be costing them an average $650 a year in extra tax on their super balance.

But just a quarter of current retirees have sought advice from their super fund, highlighting the need for funds to use more accessible language.

"We know that historically financial advice has not targeted women, and this really needs to change," Blakey says.

"Sometimes using advice language, technical language, actually puts people off."

She has witnessed members reject the offer of financial advice out of concerns such as "don't know enough".

Yet of HESTA members who requested financial advice from the fund in the last financial year, 67% felt more confident in managing their finances after a single appointment.

"We really are trying to build confidence about managing retirement and supporting our members wherever they are," Blakey says.

"We feel that more needs to be done, especially to assist women and especially when retirement is often unplanned."

Almost half of HESTA members retired involuntarily - forced to give up work due to circumstances out of their control, often to take on unpaid care.

Blakey reiterated HESTA's call for the government to introduce a carer's credit into superannuation for unpaid carers.

"Unpaid care is so prevalent and it does have an impact on super savings," she says.

Such a credit would also serve to "acknowledge how valuable that [unpaid care] is to society, how valuable to our economy".

The Commonwealth Paid Parental Leave scheme will pay 12% superannuation contributions from July if Labor if is re-elected in coming months, but Blakey says there is more to be done, particularly for low-income members.

She backed calls from the Association of Superannuation Funds of Australia for the upper threshold of the Low Income Superannuation Tax Offset to be increased from $500 to $810 a year in the March Federal Budget.

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