According to the latest MLC Quarterly Wealth Sentiment Survey, taking a career break to raise kids is the most significant barrier for women having enough savings for retirement.
Australian women rated a career break as their number one barrier (rated 70 out of 100) to retirement savings, while men ranked it third (54 out of 100) behind unemployment and major health issues.
The survey of more than 2,000 Australians also found that over half of those surveyed said they would not have enough money to retire at 65.
Women generally worry more about superannuation and investments than men do and this includes younger women, as well as those aged over 50. However, around a quarter of women who are more than five years from retirement, are not investing at all.
Commenting on the findings, NAB Wealth General Manager of Client Management Lara Bourguignon said: “With just five per cent of Australians confident they will have enough money in retirement, the gap in retirement savings will be one of the biggest challenges facing our ageing population.”
“Families, and particularly women, concerned about the impact career breaks will have on their retirement savings should plan ahead as there are strategies that can minimise this financial shortfall.”
MLC, which is part of the NAB, launched a “Save Retirement” campaign in March 2014 which includes a website at saveretirement.com.au