Why is it that many women choose not to seek more professional financial advice?
In general, women have a longer life expectancy than men, living on average 6 years longer, so there is a high chance of women outliving a partner. This means that for many women, their superannuation will have to stretch further.
A 2017 ABC report showed that in 2016, the women who retired did so with on average $120,000 less than men in their superannuation.
While women are starting to close the gender superannuation gap, it is a slow process. Women who retired in 2016 had an average superannuation balance of $157,000 while men had $271,000. But super balances for women have jumped 53% in the last two years, while for men the increase is 35%.
Part of the issue for women when it comes to superannuation and retirement planning is their often-interrupted working lives where they are raising children and have been out of the workforce or on reduced hours.
Women are also more likely to care for elderly parents, and on average don’t get an opportunity to earn a reasonable salary until later in life.
Divorce and separation also pose a significantly higher financial threat for women. While both men and women have similar savings levels while in relationships, women are on average left with less when a marriage breaks down.
Women who are part of the gen y set also need to be starting to think about seeking financial advice.
In a report published by Money Magazine, RaboDirect’s Financial Health Barometer showed that 24% of respondents in the Generation Y (those born from the early 1980’s through to the early 2000’s) age bracket would rather look to family, friends or even colleagues for financial advice, rather than seek the advice of professional financial planners.
While it’s good that Gen Y seek some advice rather than none at all, it is vital to understand the benefits of sound financial planning habits in the 20’s and 30’s to set up a secure financial future.
Setting financial goals and starting with a bucket list helps. Prioritising these goals and time-framing them helps identify where you should be allocating your salary to reach those goals, particularly if women are considering time away from work for family. Working through short, mid and long term goals is key to knowing where you want to be and what you want to achieve.
Paying off personal debt and adopting an earn more, spend less approach makes the most sense, so get rid of those credit card debts as soon as possible.
Quite simply, working closely with a financial adviser offers the opportunity to set real, sound financial goals and maximise financial security for the future.
If you’d like to know more or would like us to recommend a trusted financial planner, please don’t hesitate to contact us