Women face different financial challenges
Everyday women face many challenges often not considered by the opposite sex. One of the main differences between men and women is that, financially, women are often further behind. Generally, they contribute less into superannuation and are therefore disadvantaged when it’s time for them to retire.
Numerous circumstances can lead to this including that women earn, on average, 16% less than men. This is not the case in all situations, but for most women, it is a fact of life that the gender pay gap exists and that they are paid less than their male counterparts. This is hard to overcome, especially when negotiating for a pay rise is not a skill many possess. It can create unwanted stress and anxiety, and may have a negative impact on the way their employers or colleagues regard them.
One of the main factors for women being financially “worse off” than men, is starting a family. In most cases this means an extended period off work, where contributions aren’t being made and their superannuation balance is reduced by fees and / or insurance premiums.
Australian women live longer than men, meaning that retirement planning should be a priority. It’s important to ensure that you are contributing enough funds into superannuation now. You may need to contribute more than the 9.5% paid by your employer, to safeguard you against outliving your savings. Making Non-Concessional (after Tax) or Concessional (Before Tax) contributions is a way of boosting your super balance whilst you are working. The important thing to note is that the younger you can start making contributions into superannuation, the larger the benefit will be upon your retirement.
Whatever stage of life you are at or the goals you want to achieve it is always appropriate to seek advice from a financial planner to ensure you are getting the most out of your money.