Stewart French at Knowledgebank IQ | 06 December 2014 | Financial Planning

Does a Woman Need a Financial Plan?

As a woman, are you busy with work or with your duties in taking care of your family to worry about your own financial situation?

As they say men are from Mars and women are from Venus, the differences between the sexes are evident in every walk of life, including when it comes to finances. Women, at times, tend to place less importance on planning for their future than men. However, it is becoming increasingly important for women to have a plan in place, no matter how strong their current financial standing is.

You might be asking the reasons for this. Some of the most compelling reasons include the time women traditionally have taken out of the workforce to raise children, losing a partner, a child’s illness, separation from a partner on whom the woman was financially dependent.. Given the increasing divorce rate; women find themselves facing more responsibilities than ever before. 48.4% of all divorces granted in Australia involve children.
 

Important facts

Concrete facts and figures back up the statement that women in Australia are increasingly spending longer phases of their lives in which they need to be financially stable. Consider the following:

  • 81% of single parents are women [1].
  • Women make up 54% of all people aged 65 years and over, and 66% of those 85 years and over;
  • Over 40% of Australian marriages end in divorce [2].
  • Australian women can expect to live, on average, 5 years longer than their male counterparts [3].  

 

Start planning

Usually, all of us are our own financial advisors. We plan our funds so that we can make the most out of them. However, what we tend to do is that we focus on our present needs because they are usually more pressing and seem to be urgent in nature. This works fine until we retire.

Retirement, along with its many challenges, brings a sudden pressure on our finances. Accumulated superannuation balances currently fall well short of the required funds.

 

The solution

The purpose of stating the above facts is not to make you anxious. It is to motivate you to start planning. Many women do not have the energy or time to invest in planning for their financial future as they are too occupied with their current activities. See your financial planner to work together on securing your financial future.


 

[1] ABS 6224.0.55.001 - Labour Force, Australia: Labour Force Status and Other Characteristics of Families, Jun 2012

[2] Australian Institute of Family Studies

[3] ABS 4125.0 - Gender Indicators, Australia, Feb 2014

 

Back to tips & insights



Join the conversation

comments powered by Disqus