Women and financial empowerment

International Women’s Day is a time to celebrate the social, economic, cultural, and political achievements of women around the world. As we mark this day on 8 March each year, it is also a good opportunity to focus on important financial topics that can impact women’s lives. Two of these topics are superannuation (super) and life insurance, which are key components of a comprehensive financial plan.

Super is an investment vehicle designed to help individuals save for their retirement. In Australia, all employers are required to make super contributions for their employees. From 1 July 2022, the - rate is 10.5% of an employee’s salary and is gradually increasing to 12% by 2025. Women, however, face unique challenges when it comes to saving for their retirement.

The gender super gap is a significant concern for Australian women with a recent report from the Association of Superannuation Funds of Australia (ASFA) revealing that the average super balance for women at retirement is around $139,000, compared to $287,000 for men¹.This gap is the result of a variety of factors, including the average lower wages for women, the fact that women are more likely to work part-time, and the impact of career breaks for caring responsibilities.

To close the super gap, women may want to take control of their financial future and make informed decisions about their super, including considering the following:

• Maximise contributions – if you are eligible and make personal (after-tax) super contributions to your super fund, the government may also make a contribution to a maximum amount of $500 or you can make it more general.
• Know your super fund – Make sure you understand the fees and investment options available in your super fund.
• Review your super regularly - Speak to your financial adviser if you have any questions or would like to make changes to your investment options.

In addition to super, life insurance is another important aspect of financial planning for women. Life insurance provides financial security to you and your loved ones in the event of your death or injury. It can help cover the costs of funeral expenses, medical bills, and other costs associated with death or injury.

Women often face unique challenges when it comes to life insurance. For example, women tend to live longer than men, which means they need to ensure their life insurance covers them for a longer period². 

To ensure that you have adequate life insurance coverage, it’s important to consider the following:

• Assess your needs – consider your current and future financial obligations, such as mortgage repayments, education expenses and future care costs.
• Consider the amount of coverage you need – Make sure you have enough coverage to meet your needs and protect your loved ones.
• Review your policy regularly – Keep track of your life insurance policy and review your coverage to ensure it still meets your needs as you age, and circumstances change.

It’s also essential to understand the different types of cover available such a term life insurance, total and permanent disability insurance, trauma insurance and income protection insurance, and to consider the level of coverage required, as well as the cost of the policy, which can vary depending on your age, health, and lifestyle factors. 

International Women’s Day is a time to celebrate the achievements of women, as well as to raise awareness of the challenges they face. When it comes to financial planning, super and life insurance are some of the key components that women may want to consider, as they may help provide financial security for both the present and the future. With the right information and support, women can take control of their financial future and secure a comfortable retirement.
You can easily review your insurance and super & investments online with My Res