Unfortunately most women will face immense challenges as they reach retirement due to an imbalance in superannuation savings between men and women. The gap between men and women is said to be approximately 46% which leave many women reliant on their spouse and/or the age pension in retirement.
Why is there such a gap in savings for retirement between the genders? That is a broad answer but can be mainly attributed to these factors: career opportunity; more women in part-time work; women are working less hours than men; earlier retirement; and unfortunately the ever increasing reason:- Divorce. Most females will succumb to one or all of these factors in their work lifespan.
Women, often commonly referred to as mums, are generally the primary care-givers in the family so this cuts into their career opportunities, length of working life, and therefore their earnings potential and super contributions as a result. That’s fine if you have planned for this when you and your spouse retire. But what if your relationship doesn’t go the distance?
Whilst divorce rates have decreased ever so slightly over the past few years, the rate is still 1 in 3, meaning it is more likely for women to end up single prior to retirement, or not being able to retire at all. If you are one of the fortunate ones who stick it out, or even better truly love and trust your partner, then you will be in a situation of mutually funded retirement. Congratulations.
Not wanting to spread doom and gloom here to the female population but women tend to outlive men so your planning needs to take into account that alone time, personally and financially too.
There are so many variables as to why the female population may end up short-cashed in retirement, and it’s ok, really. You just need to plan ahead. Think about the what-ifs: What-if you don’t earn enough to generate enough Super, what-if your partner does leave this world prior to you, or what-if your relationship doesn’t make the distance?
Plan, plan and more planning. You need to establish your our financial retirement identity and plan. Here’s is where I can help: My name is Karen Vickers and I am a single mother who has faced many of the challenges above. I am also a financial adviser with many female clients and I am passionate about helping and educating women to take a hold of their own financial future. If you need any help with establishing a personally financial secure future, please do not hesitate to connect with me at ARC Wealth and we can discuss it confidentially.
If you want to start with some self-education then here’s a helpful plan for your money: Your Spending Plan. It’s a good starting point to get you in the right mindset to manage your money and build your own retirement nest-egg.