Women need to invest in their financial future
The long-term prosperity of Aussie women is at risk as they emerge from the pandemic suffering greater financial loss than men, which could impact on their financial future.
New research from super fund, Equip, shows that while a third (32 per cent) of Australian men experienced a boost in their annual income during COVID, just one in four (23 per cent) of women saw an increase.
It also reveals a larger chunk of men (31 per cent) have more disposable income in the post-COVID era than women (23 per cent).
Unsurprisingly, this tightening of finances appears to be influencing spending decisions between the sexes. Fewer women (17 per cent) are investing their disposable income into super than men (29 per cent), while more than two thirds (68 per cent) of women are saving their disposable income for short-term financial needs, such as building their emergency fund or paying education bills.
“Increasingly, we’re observing that women are more likely to save and spend their income on short-term priorities, while males are generally much more likely to prioritise longer term investments,” CEO Scott Cameron said. “One of the key indicators around this is the fact men are much more likely than women to make voluntary contributions to their super balance.”
“Our findings show women are taking care of the situation immediately in front of them and their families. This is understandable and obviously the right priority. However, for those who can afford to, keeping one eye on their financial pot for the future is equally important. Otherwise, women risk prioritising today to the detriment of tomorrow.”
The results of Equip’s survey, which was distributed among more than 2,000 Australians, also shows women are far less likely (38 per cent) to make voluntary contributions to their superannuation balance than men (54 per cent). The results also find that, shockingly, less than a third of Australian women (30 per cent) have an accurate idea of what their super balance is currently.
It also showed men were 1.5 times more likely than women to invest their disposable income in a range of platforms, including shares, ETFs, NFTs, crypto, super or other investments (54 per cent of men compared to 33 per cent of women).
“The data shows us that since COVID, women, when compared to men, are not only earning less and have less leftover at the end of the month, but they also have fewer investments at play to build what wealth they do have. There is a risk this all comes together to leave women short-changed when they come to later life," Mr Cameron said.
“On a positive note, we are seeing in recent years that women are increasingly taking control of their finances,” said Mr Cameron, “but this data suggests there is still a lot of work to be done.”
“What we really hope to see over the coming years is more attention paid to future investments like super. We want to help women achieve a brighter future without having to sacrifice their ‘today’. With the right planning in place, they can achieve both.
“We have a commitment to equip our members with knowledge and tools today to prepare them for whatever tomorrow brings. Equip offers personalised advice tailored to each of our members, to ensure they get the best outcome for their super.” Mr Cameron said.
Photo: Janko Ferlic/Unsplash
