Women over 50 feel they’ll be disproportionately affected by the rising cost of living, with major concerns over a gender superannuation gap.
According to a report by Australian Seniors, in partnership with CoreData, 93 per cent of seniors interviewed believed expenses will continue to increase, and 85 per cent agreed women have less money saved upon reaching retirement.
Financial consultancy firm, The Wealth Designers senior financial advisor Dawn Thomas noted that an individual’s super balance is affected by many variables, including career breaks, wages, divorce, a caring occupation, the list goes on.
“A number of life events uniquely experienced by Australian women causes the compounding of the super gap, which in turn has devastating impacts on women’s economic security,” she said.
“While for the most part, many Australians are disengaged with their super accounts, unfortunately, women over 50 can’t afford to not be engaged with their super,
“Being a passive financial participant is not a luxury women have, and even more so with the recession looming, women should be taking more control of their positions.”
In managing your super and ensuring financial security, Ms Thomas suggests sitting down with yourself and thinking about a retirement budget and your next 30 to 40 years, including expenses like a new car or travelling.
“It may be helpful to consult documents like ASFA Retirement Standard to get a sense of average retirement figures and then work backwards using your wish list to calculate how much you need in your super,” she said.
She also suggests understanding your super statement to understand your current situation and if you can afford it, make additional super contributions.
“There are multiple ways to contribute to super whether they are tax-deductible, tax-free, from an individual or contributed via a spouse.”
Lastly, she encourages individuals to educate themselves and “don’t relinquish your role in making financial decisions,” Ms Thomas said.
“There are plenty of videos, articles, books, and podcasts available to help improve your financial literacy in different ways,
“If you need additional support achieving your personal goals, consult a financial adviser. A healthy financial process is one where you feel comfortable enough to collaborate with your adviser and feel empowered to ask any questions and make your own decisions.”
