Financing Old Age: Why is There Still Gender Inequality?

Abstract

Financing retirement is a major concern, especially for women. The present paper reviews significant changes to Australian retirement incomes that require greater individual responsibility for saving, planning, and managing retirement finances. Data on women's financial situation and planning for retirement, and the possible reasons for their limited superannuation accumulations, are explored. The implications for social work of the requirement that women develop capacity for financial planning and management before, as well as in old age, when physical and cognitive capabilities may be compromised, are discussed.

Abstract

Keywords:

• Aged
• Elder Abuse
• Women
• Retirement
• Financial Issues

Notes

¹Defined benefit schemes guarantee the final payout, which is linked to a set formula, usually a multiple of years of coverage and earnings. The trustees of the fund bear the investment risk. Defined contribution schemes pay a benefit at retirement determined by contributions and the accumulated returns. The fund members bear the investment risk.

²“DIY” or self-managed superannuation funds are funds with a maximum of four members who are also the trustees, are responsible for investment decisions, and bear all of the investment risk.

³In July 2008, to retain eligibility for a part-pension, single homeowners could have up to $540,000 in assets addition to their principle residence and up to $39,507 annual income; if partnered, these figures increase to $856,500 and $66,000, respectively.