The Common Superannuation Strategy Leaving Women Behind
Many women are starting retirement on the back foot, and one of the most trusted superannuation strategies could be making the problem worse.
The "60/40" investment strategy, with 60% of savings in shares for growth and 40% in bonds for stability, has been considered the gold standard for retirement.
However, new research from Monash University suggests this one-size-fits-all approach might not be as reliable as we think, and for many women, it could leave them running out of money far sooner than expected.
Women are at significantly greater risk of exhausting their retirement savings than men if they rely solely on the traditional 60/40 mix.
A study found that this strategy could have severe consequences for women's retirement savings, making them more likely to run out of money.
Author's summary: Women's retirement savings are at risk due to the 60/40 strategy.