At Evalesco, we believe in empowering you to be Healthy, Wealthy, and Happy, and having confidence in your financial decisions is a key part of that. Planning for retirement can feel overwhelming, and many Australian women lack confidence in this area. However, taking small, simple steps today can lead to a more secure financial future.
The Financial Reality for Women
It’s widely known that many Australian women retire with less superannuation than men. Recent research by Colonial First State (CFS) confirms that in 2024, this disparity still exists.
This is due to several factors, including the gender wage gap and the impact of taking career breaks to raise a family. These breaks reduce contributions to super over time and limit the benefits of long-term compounding returns.
CFS research shows that 78% of men have planned for their financial future, while only 67% of women have done the same. Women are also less likely to set specific financial goals.
Steps to Build Financial Security
Despite these challenges, there are actionable steps women can take today to improve their financial well-being.
Understanding Brings Confidence
Women are just as concerned about their finances as men, but they often feel less confident about managing them. Many women report feeling anxious or guilty about not doing enough to manage their money. This lack of confidence can be a significant barrier to making informed financial decisions.
The good news is that confidence grows with knowledge. As you learn more about superannuation, investing, and future planning, your ability to make sound decisions increases.
Simple Actions to Strengthen Your Financial Future
Here are a few steps you can take to gain control over your super and build confidence in your financial planning:
1. Review Your Super Regularly
Avoid the “set and forget” approach when it comes to superannuation. Make it a habit to review your balance and investment options regularly. Ensure your contact details are up to date, so you receive all important communications.
2. Consolidate Your Super Accounts
If you have more than one super account, you may be paying unnecessary fees. Consolidating your accounts can help save on fees and simplify the management of your super. There is also a possibility that you may have lost or forgotten super. According to the ATO, as of June 2023, there was over $16 billion in ‘lost’ super.
3. Add to Your Super
Even if your super balance is currently lower than you’d like, adding small amounts can make a significant impact over time. Thanks to the power of compounding, where your earnings generate more earnings, every contribution can help grow your balance.
Positive Developments in the Financial World
There’s also some good news on the horizon. Interest rate hikes appear to be slowing down, providing relief to borrowers. In addition, Michele Bullock’s appointment as the first female RBA governor marks a positive step forward for women in finance.
In Conclusion
At Evalesco, our goal is to help you lead a Healthy, Wealthy, and Happy life. Taking control of your financial future doesn’t have to be intimidating. Here are a few steps you can start with today:
- Regularly check your super balance.
- Look for any lost super or multiple accounts to consolidate.
- Consider making small contributions to your super to benefit from compounding growth.
- Grow your financial knowledge to boost your confidence in decision-making.Women
We’re here to support you at every stage of your financial journey. To get started, book an appointment with Evalesco Financial Services today.
Source: CFS commissioned survey of 2,966 Australians, research completed in March 2023.
^Source: Australian Families Then & Now: Income and Wealth (aifs.gov.au)
