Financial planning for women

While we may be stating the obvious by saying there are distinct differences between men and women, when it comes to money, this definitely is the case!

It has never been more important for women to obtain personalised financial advice. Consider the following:

the number of women in the workforce has increased by almost 25% in the last 25 years;
at least 80% of women will spend at least a decade on their own;
most Australian women will not have enough money to cover living expenses in their retirement;
on average, women live six years longer than men;
the average length of widowhood is 15 years;
nearly 40% of Australian marriages end in divorce, with women often financially worse off; and
most single parents in Australia are women.

While many conclusions can be drawn from these statistics it highlights why women are taking greater control of their financial futures.

Considering that in many cases women are still not paid as highly as men, the following life circumstances can have a more dramatic effect on a woman:

Outlive your partner, whether you are young or old;
Divorce; and
Serious illness for you or your partner.

These are a few of the complexities life can throw at you and we are sure that there are many more the statistic makers have not thought of. It highlights the need for women to consider their financial position for the future and plan for "unexpected" events.

With a financial plan in place and a professional guiding hand, if disaster strikes at least you will know you have prepared – and that you won't be alone.

Start planning now

When you look at the statistics above, there are a vast number of women who may not have accrued the necessary superannuation and will find that their retirement nest egg just won't last the distance.

That's why it's important to plan for your retirement now. If you are a woman, either working for your family or for an employer, please take the time to sit down and do some homework.

Work out when you would like to retire and do some quick sums on how much money you'd like to retire on (i e: annual/ income). If the two scenarios don't match, give Glenn or Deborah a call at Baker Affleck Financial Solutions to make an appointment. They will be happy to guide you in the right direction and help you plan a future that suits your personal needs.