Single Touch Payroll (STP), is an Australian Government initiative to reduce employers' reporting burdens to…
Women Are Going Broke
There has been an ongoing concern regarding women and their retirement. Women live longer than men and the facts show that they look after their families (children and parents) and as a result, cannot put as much away for their retirement as a man would. The Women’s Super-Summit addressed these concerns. If our female clients and friends don’t change what they doing, the message from this summit was clear:
Women are going broke.
Here are some facts to help you understand:[toggle title=”
50% of women live to 100 but won’t have enough
Women live longer than men and there is a risk that their superannuation will not last for their retirement. Women outlive their male counterparts by 5 years on average.[/toggle] [toggle title=”
There is still a gender pay gap.
The gap is 17.4% and this is 110 years after women started voting in Australia and they are still earning less than men. $44,000 is the average salary of an Australian woman in the workforce. Keep in mind 43% of Australian women work part-time both out of choice and necessity. The study found:
- 70% of the time women are the Primary carers for parents.
- Women on average spend five hours per week caring for children compared to men.
Some women who return to work, may take lower paying jobs when they return to work. As a result of the above, the part time hours and if the income is low, employers are not required to contribute to Super. Most absences from work can also impact super contributions as there is not as much income and therefor super to put away. For example:
A nurse takes time off to care for children, the summit highlighted a staggering figure. The amount of super that a female nurse misses out on if she has 9 years out of the workforce caring for children, returns to work part-time before going full-time and later works part-time again to care for her elderly parents until retirement would be $538,980.
Putting the part time situation aside, 70% of the three lowest paid occupations are held by women. A 25 year old man is expected to earn 1.5 times more over a working lifetime compared to a 25 year old female. Women in the 55 to 64 year age group earn on average two thirds of men’s income. If a women was to continue work uninterrupted there would still be a gap in income and superannuation. The amount of super that a female on an average salary misses out on even if she works full time is $207,181.
This information was sourced for the Australia Institute, ABS and ACTU and not some organisation trying to frighten anyone into making a decision.[/toggle]
What is the solution?
The solution is to act now. A Lindale Insurances Financial Planner can help you:
- Achieve financial security.
- Demystify the misconceptions about Superannuation.
- Guidance on how much you need to retire on.
- Safeguarding your family’s future.
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[…] on due to the time out of the workforce. (You can check out the article we wrote on this subject here). This will allow individuals with fluctuating work patterns to make additional concessional […]