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."
AUTHOR
Mike Taylor
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
