The gender gap remains a real issue when it comes to financial planning.
All you need to do is look at the disparity between men and women when it comes to their superannuation savings.
According to the Australian Human Rights Commission, half of women aged between 45-59 have less than $8,000 in their superannuation fund. The equivalent for a male is $31,000.
At retirement age, the average payout for a woman is $37,000.
The equivalent for a man is a $110,000.
In Australia, a full-time working female will statistically earn 16% less than a male.
Quite clearly there are larger gender inequalities at play. This article is not aimed at solving these problems. It is aimed at addressing the fact that statistically speaking a male will end up with more money in superannuation by the time they retire.
The end result is a real imbalance when it comes to planning a secure retirement strategy. Something we as planners don’t like!
What we don’t want for our clients is time to pass them by. For them to reach the age of 60, retire, and then say, “Hang on, I have all the super money, and my wife doesn’t” (or vice versa).
By gaining a better understanding of some of the tax and structural advantages available when it comes to superannuation, we can potentially shift or mitigate these imbalances. Thinking about this while you are still young allows you to manage the balance of superannuation money amongst you and your partner.
The outcome we don’t want is reaching retirement age and have all of our money with one person.
Strategies such as contribution splitting, spouse contributions and co-contribution may be available to balance this gap.
By acknowledging there is a problem, understanding how this applies to your specific circumstances, and then figuring out what you are going to do about it will set you and your partner up for when you do reach the glory years.
Knowing full well, that if you keep going statistically, the male will retire with more money than the female.