INTHEBLACK November 2021 - Magazine - Page 42
F E AT U R E
// F I N A N C I A L F R E E D O M
government organisations and the private
sector need to collaborate.”
COUNTING THE COSTS
Financial security is an uphill battle for
many women.
On average, women in full-time work earn
less than men. With Australia’s national
gender pay gap at 13.4 per cent, this equates
to men earning nearly A$25,534 more per
year than women in equivalent full-time
employment.
The compound effect of this income
inequality means women currently retire
with 47 per cent less superannuation
than men.
Sandra Buckley, CEO of Women in
Super, also points to the fact that one in two
working women earn an annual salary of
A$40,000 or less, so many are ineligible for
tax concession benefits in superannuation.
“They’re in the lowest income tax
percentiles. This means they rarely, if
ever, benefit from the superannuation
tax concessions because they do not earn
enough, nor do they have additional money
to put away,” she says.
“This may be because they work parttime due to family responsibilities or
because they struggled to re-enter the
job market after a period of leave.
“Caring impacts every female, irrespective
of whether they actually have children. As
a country, we fail to take these issues into
account. We do not recognise the economic
benefits to the country of this unpaid caring
work, but instead it is women who carry
the financial burden in terms of job and
economic insecurity.
“The policy question is, how can we
redistribute tax concessions more fairly and
compensate for caring?” says Buckley.
Hamilton also points to systemic
structural issues that work against single
women that need to be addressed.
“There are some structures within the
superannuation system that couples can benefit
from and single people can’t.
“Many couples find ways of sharing
superannuation – partnered people, for
example, can benefit from things like the
low-income spouse offset.”
42 ITB November 2021
“ C A R I N G I M PA C T S E V E RY
FEMALE, IRRESPECTIVE OF
W H E T H E R T H E Y A C T U A L LY
H AV E C H I L D R E N . AS A
C O U N T RY, W E FA I L T O TA K E
THESE ISSUES INTO
A C C O U N T.”
SANDRA BUCKLEY, WOMEN IN SUPER
“ T HERE ARE SOME STRUCTURES
WITHIN THE SUPERANNUATION
SYSTEM THAT COUPLES CAN
BENEFIT FROM AND SINGLE
PEOPLE CAN’T...PARTNERED
PEOPLE, FOR EXAMPLE, CAN
BENEFIT FROM THINGS LIKE THE
LOW-INCOME SPOUSE OFFSET.”
ASSOCIATE PROFESSOR MYRA HAMILTON,
UNIVERSITY OF SYDNEY
SEEKING HELP
Financial advisers and accountants can
be key advocates in the battle to address
inequalities for women, says Hamilton,
adding that many participants in the
research note that gender norms are imbued
in some of the services.
“Women reported a series of barriers that
prevented them from accessing the financial
assistance they needed. This included a lack
of trust in financial services and a lack of
tailored services. They felt dismissed, or they
felt that there were judgements being made
about their financial capabilities because
they were women.”
Buckley agrees that financial service
providers are in a unique position to identify
areas of risk for women and help them
develop a plan to allow them some dignity
in older age.
“For accountants and financial advisers,
it really is about considering the options
from a female perspective – making sure
information is readily accessible and femalecentric. Also, encouraging women to look
at their investment and retirement plans
and remembering that it is never too early
to start, but it is also never too late to think
about retirement planning.”
Hamilton says better coordination
between services assisting older single
women is a good place to start.
“What would be really useful is if financial
advisers could work with some of the other
organisations that are helping women
during transition periods – for example, if
they’re accessing relationship support after
a divorce, they could point them towards
affordable options for financial advice
that can help women manage the postseparation process,” says Hamilton.
For Ward, financial advice has been a key
instrument in helping her navigate her future.
“An accountant is the most important
person in any woman’s life. I could not have
got through my financial situation without
an accountant. They are as important to
you as your doctor, and they will advise you
better than any financial adviser at a bank.
“My advice to young women – to any
woman – is to buy a house, invest in your
super and to get an accountant.”