By the year 2009, approximately 100,000 Australian women will find themselves divorced, over the age of 59 and heading towards retirement on their own.
By the year 2009, approximately 100,000 Australian women will find themselves divorced, over the age of 59 and heading towards retirement on their own1.
At around the same time (2010) the average superannuation balance for a women aged between 55 and 64 years is only expected to be $63,600.2.
This is a far cry from the $520,000 needed to fund the $30,000 per annum many people say they need to live off during retirement.3.
Grant Salmon, chief operating officer of Aviva, said all women nearing retirement age have to get serious about their retirement needs and their future income, be it as part of a couple, or as an individual.
"Women looking towards retirement need to ensure they are financially prepared individually. Now is not the time to rely on their husband’s financial strategies – it’s essential to consider their own needs when they look at options," said Grant.
For many women there is still time to ensure they are financially prepared. Right now, 40 per cent of women aged between 55 and 64 years are employed4 and therefore still earning and receiving compulsory superannuation from their employer.
"Make the most of all your time in the workplace. When you are working is the time to really concentrate on your superannuation and retirement needs," says Grant.
Divorce isn’t the only hurdle women may meet as they head towards retirement. Together, death and divorce will lead to 30 per cent of retirees living on their own5. This is of special concern to women who live longer than men - the current average life span is 82 years for females and 78 for males6.
"This is a serious warning, women in the baby boomer generation have really missed out on the benefits of compulsory superannuation so they need to seriously think about the best methods of saving for their retirement right now," comments Grant.
"When considering your needs you have to firstly be very clear about your plans. Women need to take control of their working life and ensure they have a plan detailing when they want to retire and how they want to live when they reach retirement," said Grant.
The average age for retirement is around 63 for men and 60 for women7. Yet, the Australian Longitudinal Study of Women’s Health says 50 per cent of women aged between 53 and 58 still don’t know when they want to retire8.
"The decision of when to retire is an important step – and not one that should be made in a hurry. It’s important to look at your whole life before deciding when to stop paid work, this includes your marital situation, ongoing family obligations and financial commitments," said Grant.
A financial adviser can assist in creating a robust financial plan which takes all life situations into account.
Grant Salmon is available for interview.
1Ferris, S, Olsberg D, Missing Out? Women and Retirement Savings, Macquarie University, Department of Actuarial Studies Research Paper Series, October 2001, Sydney
2Kelly, S, Forecasting wealth in an ageing Australia – an approach using dynamic microsimulation, National Centre for Social and Economic Modelling, Canberra, June 2003.
3Figures in today’s dollars. The Association of Superannuation Funds of Australia Limited, An Adequate Retirement Income?, June 2001, Sydney.
4The Association of Superannuation Funds of Australia Limited, Chances of health, wealth and happiness, January 2004, Sydney.
5The Association of Superannuation Funds of Australia Limited, Chances of health, wealth and happiness, January 2004, Sydney.
6Ferris, S, Olsberg D, Missing Out? Women and Retirement Savings, Macquarie University, Department of Actuarial Studies Research Paper Series, October 2001, Sydney
7The Association of Superannuation Funds of Australia Limited, Chances of health, wealth and happiness, January 2004, Sydney.
8Australian Society for Medical Research, The Australian longitudinal study on women’s health: Unique Australia study continues to deliver the goods, 2004, Newcastle.
For further information please contact:
Simon Morgan
(03) 9829 8892
0407 966 632
Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners, the Australian funds management arm of Aviva plc, is a sister company. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world’s seventh largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$66.08 billion, and more than A$472 billion of assets under management (as at 1 January 2004). The group has more than 56,000 employees and 30 million customers worldwide.
- The information in this document reflects Norwich Union Life Australia Limited's (NULAL) and NULIS Nominees (Australia) Limited's ('NULIS') understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. Applications to invest in a financial product issued by Aviva, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Aviva or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances.