Age discrimination undermining retirement adequacy
Age discrimination is still occurring in the workforce and is impacting the ability of over-50s to accumulate sufficient retirement savings, according to new research released by the Financial Services Council (FSC).
The research, conducted for the FSC by Westfield Wright, found 28 per cent of older workers had experienced discrimination, with the most common instance being made redundant before other, younger workers.
It found that discrimination was most acute among middle-ranking managers earning the average Australian wage of $70,000 a year.
The research reports that over-50s earning under $80,000 a year are more than twice as likely to have experienced age-related discrimination as those earning more.
The research also suggested older workers were finding the going tough in the current economic environment, with some employers seeking to recruit younger staff.
It said this was a key concern for older workers, who were trying to save as much superannuation as they could before they retired.
"Close to 50 per cent of over 50-year olds said they were dissatisfied with the amount they had put aside for their retirement, with more than half of those feeling very concerned," it found.
Commenting on the results of the survey, FSC chief executive John Brogden said attitudes to older workers needed to change because Australia was facing an ageing population crisis.
"At current trends, by 2050 there will only be 2.7 working Australians for every citizen over 65," he said. "Without action, this will have serious implications on the quality of life of every Australian."
Recommended for you
Private markets may be the hot topic of the day but two financial advisers have shared the red flags to consider and why advisers shouldn’t be tempted to invest solely in the pursuit of higher returns.
The corporate regulator has officially launched its new digital portal for financial services businesses submitting AFSL applications, offering a more “efficient, modern and user-friendly” experience.
The advice community has reacted to the re-election of the Labor Party for a second term and called on the incoming Minister for Financial Services to take “decisive action” as Stephen Jones retires from politics.
Advice licensee Finchley & Kent has announced a strategic partnership with technology firm Padua Solutions as licensees are encouraged to broaden their tech usage.
