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Life matters - Launch of Widows and Women Planning Ahead Project

Age Discrimination

Thank you for inviting me to join you at this Life Circle event.

I am full of admiration for the work of the Life Circle program, and the assistance it offers to women at that very traumatic time of your life, facing widowhood or life without a partner.

I congratulate all involved in the program and I congratulate all of you here today who are taking that all important step for this stage of your life cycle, getting yourselves informed.

As a committed advocate for later life planning, I am very pleased to be discussing this important subject with you and pleased to be invited to launch your excellent brochure, Women and Widows Planning Ahead.

Planning ahead is vital for all of us, but especially women.

We know that women are less likely than men to plan for retirement - and women end up with less retirement income than men.

The reasons for this discrepancy are well known to us too. Women are more often the carers of children and family members, and thus more likely to have intervals in their working lives.

This means less income and less superannuation savings. Because of these circumstances, women can be financially vulnerable if relationships break up or if they outlive their partner.

Planning for the eventuality of being single in retirement is essential, and particularly urgent if you are at that stage of your life cycle where you have recently been widowed, or expect to be single before long.

What happens?

Most older Australians, men and women rely on the Age Pension. Eighty percent of Australians aged over 65 get some form of Age Pension and 55 percent of these are wholly dependent on the Pension.[1] Women make up nearly 60 percent of those totally dependent on the Pension.[2]

Women also account for nearly 69 per cent of people on Carer’s Payments; a payment that does not include a Superannuation component.[3]

The pension and payment incomes are very modest, particularly for people who do not own their own homes outright. With declining rates of home ownership, older women as a group are becoming increasingly vulnerable to poverty.

WOMEN ARE LIVING LONGER WITH LESS

Our longer lifespans mean that women are living longer with less.

Right now, women can expect to live to 84 and men to 79 years.[4] With life expectancy continually rising, many women and men will be reliant on the Pension for decades.[5]

The crucial question is: have we saved enough to live with dignity and security? Have we done enough planning to ensure there are no surprises in retirement?

Too often the answer to this question is no.

Despite earning less over a lifetime than men, and therefore having lower super savings, women are less likely to plan their finances for retirement.

It is sobering to consider that in 2011, ABS stats show around 60 percent of women aged 65-69 had no superannuation savings.

Of those receiving super, the average payout for women is significantly less than for men – men receive nearly $200,000 in super while women have just over $110,000 on average.[6]

So what can be done to assist women with retirement income planning?

FINANCIAL INFORMATION

The most important thing is to make sure that reliable, accessible and authoritative information is easily available.

Some of you may know that some large scale projects are currently doing just this. Recently, the Australian Government asked ASIC to develop a National Financial Literacy Strategy.

ASIC’s MoneySmart[7] offers programs for financial literacy educators and some internet-based resources for the Over 55s. The MoneySmart website has some very good guides and online tools.[8]

I recommend you all have a look at these.

The NSW Older Women’s Network – OWN – has produced some excellent, simple and accessible brochures warning women about financial abuse, again a problem experienced more by older women. The brochures are called: How Could They? and they tell stories and explore the legal and financial issues related to:

Have a look at these brochures. OWN Network has a website and a phone number (9247 7046).

I am close to completing a publication called: Your Rights at Retirement, which will provide basic, straightforward information on financial matters and describe the different entitlements that are available to people approaching, or in retirement.

The aim of this free publication is to help older people to understand and manage their finances better, to resist financial bullying, scams and fraud, and to know where to go to get more information on these subjects.

I will make sure copies of this publication available to Life Circle when it is launched in July this year.

CARING RESPONSIBILITIES

As we know, many women become carers and move from the role of partner to carer to widow.

We are talking about a lot of people.

In Australian in 2009, approximately 19 percent of people aged 65 and older were carers receiving some government payment.

In addition, more than 2.6 million Australians were informal carers –receiving no payment for their caring responsibilities.[9] The majority of these people were aged 55 or older.[10]

Caring for family members, ailing parents or partners is crucially important, and I can’t emphasise enough the need to support the carers.

As well carers need to take steps to assist themselves

Planning for things like Enduring Power of Attorney need to happen before individuals lose the ability to make these important decisions.

Carers also need to take good care of themselves, and research the different support options that are available.

It is an unfortunate fact that some long-term health conditions and disabilities appear to be a direct effect of informal caring. An estimated 39 percent of primary carers have a disability[11]

So finding out about respite options and all of the new support to be available with the Aged Care Packages and DisabilityCare program is essential at this part of the life cycle.

PAID WORK PARTICIPATION

One of the best ways to improve one’s finances, if it is possible for you, is to keep working; part-time or full-time.

And working is good for our health. ABS studies show that those of us who stay on at work past the notional ‘retirement age’ have improved health and well-being.[12] Health experts like Professor Ian Hickie see employment as the best protection against mental and physical illness.

There are barriers to those older people willing and able to work, and the worst of these barriers is age discrimination.

Most age discrimination complaints received by the Australian Human Rights Commission have been in the area of employment.

Many of us are working to get rid of this discrimination and it must go. Things will need to change, not only for these individuals who need to work, but for the national economy.

We have a looming shortfall in workers. This should not be when we know that the population aged 55-70 is a massive untapped source of productive capacity.

Of course it is a good thing that some older Australians are voluntarily retired, and rightfully enjoying their retirement years.

But many older Australians are unemployed involuntarily, years before they reach pension age.

It is the top priority of my work to break down this discrimination so that willing older people can continue in paid work.

Then there is the matter of where we live as we age.

When asked, most people say they would prefer to be living independently rather than in supported accommodation as they age.[13]

Australia has among the highest home ownership rates in the OECD and the family home is generally a retiree’s greatest asset. Nearly 85 percent of Australians aged 65 and older live in their own homes while 13 percent live in rented accommodation.[14]

Only about one in four people 85 years or over lives in care accommodation.[15]

Living in your own home allows for independence and is linked to quality of life. Those living at home are more likely to be actively engaged in the community. According to the ABS, the main activity in the last 12 months for older people living at home was visiting friends or relatives followed by going to a restaurant or club.[16]

The Living Longer Living Better aged care reforms that the Government has currently before the parliament are designed to assist people to stay comfortably at home for as long as the individual is willing and able.

Again, people living at home will need to find out what the new arrangements mean for them and how they can get the assistance they are eligible for.

So where are we in Australia 2013?

Part of my job requires me to inform myself as to how other countries around the world deal with their older citizens.

On the whole, I think as a nation, as a community, we are doing quite well. Compared with other countries, in Australia we have a well-developed system of financial, health and program supports for older people.

We not only enjoy extra years of life we enjoy most of those extra years in good health.

It is important that we all take all necessary steps to ensure those extra years are as satisfying as possible.

This leads me to my final point:

We need to be vigilant and well-informed as individuals. There is only so much that governments can provide in terms of services and supports; NGO’s like Life Circle add great value. But the rest is up to the individual. We need to plan our finances, source appropriate information and access the services we need as we age.

Women, I hope we all agree, have a particular need to do this planning.

It may not have been the traditional role of women in Australia to manage the long-term family finances, but it has to be the role these days.

Recognising that women have a longer life expectancy, there is a high probability that women will be single at some time in their lives and need to manage their own affairs. So we must take steps to ensure that we are prepared for this eventuality and that we manage our longer lives with as much independence and vitality as we can muster.

It is the great challenge that most of us will face and many of you are facing right now -

how to ensure that our older years, even if lived without a partner, are happy and secure.

I am now pleased to launch Widows and Women Planning Ahead.

[1] Aged and Community Services Australia, An Ageing Australia, Fact Sheet 1, p.2. At http://www.agedcare.org.au/publications/resources/fact-sheets/acsa-fact-sheet-1-2008--an-ageing-australia.pdf/view (viewed 24 January 2012).
[2] Families, Housing, Community Services and Indigenous Affairs,‘Output group 2.1, Support for the aged’, Annual Report 2007-2008. At http://www.fahcsia.gov.au/about/publicationsarticles/corp/Documents/2008%20Annual%20Report/06_1.htm (viewed 24 January 2012).
[3] J. Harmer, Department of Families, Housing, Community Services and Indigenous Affairs, The Pension Review Report, 2009, p. 10. At http://www.fahcsia.gov.au/about/publicationsarticles/corp/BudgetPAES/budget09_10/pension/Pages/PensionReviewReport.aspx (viewed 24 January 2012).
[4] ABS, 4102.0 - Australian Social Trends, Mar 2011. At http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/4102.0Main+Features10Mar+2011
[5] Old, Single and Poor: Using Microsimulation and Microdata to Analyse Poverty and the Impact
of Policy Change Among Older Australians. NATSEM, National Centre for Social and Economic
Modelling, University of Canberra.
[6] ASFA, ‘Average super balances boosted despite volatile economy’ (Media release 19 September 2011). At: http://www.superannuation.asn.au/media-release-19-september-2011 (viewed 31 January 2012).
[7] ASIC ‘Money Smart’ http://www.moneysmart.gov.au/
[8] Australian Securities and Investments Commission, Money Smart, Income sources in retirement. At: http://www.moneysmart.gov.au/superannuation-and-retirement/income-sources-in-retirement (viewed 15 December 2011).
[9] Australian Institute of Health and Welfare, Australia’s Health 2012, Australia’s health series no.13, p 78. At http://www.aihw.gov.au/publication-detail/?id=10737422172 (viewed 27 June 2012).
[10] Australian Institute of Health and Welfare, Australia’s Health 2012, Australia’s health series no.13, p 79. At http://www.aihw.gov.au/publication-detail/?id=10737422172 (viewed 27 June 2012).
[11] Australian Institute of Health and Welfare, Australia’s Health 2012, Australia’s health series no.13, p 80. At http://www.aihw.gov.au/publication-detail/?id=10737422172 (viewed 27 June 2012).
[12] Australian Bureau of Statistics, 4837.0.55.001 - Health of Mature Age Workers in Australia: A Snapshot, 2004-05. At http://www.abs.gov.au/ausstats/abs@.nsf/mf/4837.0.55.001 (viewed 20 September 2011)
[13] S Lunn, ‘Older Australians keen to age at home’, The Australian, 25 February 2011. At: http://www.theaustralian.com.au/news/nation/older-australians-keen-to-age-at-home/story-e6frg6nf-1226011617585 (viewed 27 January 2012)
[14] Australian Bureau of Statistics, Housing Arrangements: Housing for Older Australians, 4102.0 – Australian Social trends, 2005, p. 5. At: http://www.abs.gov.au/ausstats/abs@.nsf/2f762f95845417aeca25706c00834efa/4fe57db85b46d6cfca25703b0080cccc!OpenDocument (viewed 27 January 2012)
[15] Australian Institute of Health and Welfare, 2011. ‘Ageing and Aged care’, Australia’s Welfare, Australia’s Welfare series no. 10, Cat. No. AUS 142. P. 168 Canberra, AIHW. At: http://www.aihw.gov.au/publication-detail/?id=10737420537 (viewed 6 September 2012)
[16] Australian Bureau of Statistics, Latest Findings, 4914.0.55.001 – Age Matters, June 2011. At: http://www.abs.gov.au/ausstats/abs@.nsf/7d12b0f6763c78caca257061001cc588/ea6bbe44feac7fe2ca2572a400109d19!OpenDocument (viewed 25 January 2012)

The Hon Susan Ryan AO, Age Discrimination Commissioner