Females less retire-ready
Single females are 30 per cent less retire-ready than men due to longer life expectancies, lower income levels during their careers, and career breaks during child bearing years, the CommBank Retire Ready Index showed.
The index revealed the average single female could expect to attain personal retirement savings equivalent to 47 per cent of her comfortable retirement requirements above the age pension, or just $35,000 a year.
On the other hand, the average single male could retire with savings equivalent to 78 per cent of his comfortable retirement needs above the Age Pension, or $39,000 per annum.
The index showed the average retirement savings adequacy for males aged 35-39, including the Age Pension, is 85 per cent, but for females it is only 46 per cent.
Males aged 40-44 could expect retirement savings adequacy of 88 per cent, while females could only see 52 per cent.
The results take into account recent Age Pension asset test changes.
However, the Age Pension could shelter females from lower retirement assets as they could expect higher Age Pensions because they would have lower assets.
The index showed the average retirement savings adequacy for males aged 40-44, excluding the Age Pension, is 68 per cent, while for females it is only 39 per cent.
The gap between males and females with the same income is still higher for females because of their longer life expectancy.
A male earning between $55,500 and $62,900 could expect average retirement savings adequacy of 95 per cent, while females in the same salary bracket could expect adequacy of 85 per cent.
AUTHOR
Malavika Santhebennur
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