How Women Can Future Proof Their Wealth

Planning for retirement is daunting, but it’s too important not to think about – especially for women. Fortunately, there are some small steps women can take today to protect and grow their finances for the future and future proof their wealth.

It’s probably no surprise to hear that Australian women often retire with less money saved up than their male peers. New research* confirms that this is still the case even in 2024.

There are several reasons, including well-documented wage gaps and taking time out of the workforce for caring responsibilities.

Not only do women end up investing less money in super throughout their careers, but they also miss out on the compounding effects of super, which grow balances over time.

Women are also less likely to invest their money outside super than men. Data shows that while 38% of men have invested their money, only 26% of women have done the same.

Similarly, the research found that while 78% of men have made plans for their financial future, only 67% of women have done the same. Women are also less likely to set financial goals or create and stick to a budget.

Knowledge is power

It’s important to note that women care about their finances just as much as men. Compared to their male peers, women are more likely to feel worried about their finances or guilty that they’re not doing enough to manage them.

So what’s holding them back? One major hurdle is confidence – specifically, women aren’t as confident with money and investing as men. It’s hard to make sound financial decisions when you don’t trust you know what a ‘good’ decision looks like.

Luckily, financial ‘confidence’ is strongly linked to education. The more we know about super and investing, the more confident we can be in our decisions.

What’s more, there are several easy ways for women to brush up on their financial knowledge and back themselves:

  • Read correspondence from your super fund
    Super is the largest financial asset most Australians will own outside of a family home, but women are far less likely than men to read letters or emails from their fund closely. These messages include essential information about your account and can help demystify the super system so you can better grasp the returns you receive and what’s influencing them.
  • Check out online education hubs
    There’s plenty of useful information available online to help you navigate investment markets, super, insurance, and more—just be sure to check that you’re dealing with a reputable source.
  • Get help from a professional
    A core part of a financial adviser’s job is to help educate clients about their finances so they can make informed decisions about their money. Working with a financial adviser can help you plan for your future so you’re more likely to reach your goals.

A core part of a financial adviser’s job is to help educate clients about their finances so they can make informed decisions about their money. Working with a financial adviser can help you plan for your future so you’re more likely to reach your goals.

Ready to future-proof your wealth? Contact the team at Everalls Wealth Management today,

* Source: CFS surveyed 2,966 Australians, and research was completed in March 2023. The findings and statistics in this article are based on this research.

 

Source: Colonial First State

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