The roles of men and women both have undergone great changes since the Industrial Revolution. Having said that, the changes have been more drastic for women, and the role of women has been a subject of controversy ever since.
Women have been inspired to work more, earn more and be more independent.
As a flow-on effect, they are more focused on security and their financial situation. According to the latest BT Australian Financial Health Index:
“89% of women are at least jointly responsible for making major financial decisions for their households, while 48% are the key financial decision-maker.”
With more women taking the reins when it comes to their own and their family’s financial situation, it is all the more important for them to seek professional advice.
Financial planning is so crucial for women of all ages including:
- Women starting their careers – who want to secure their financial futures and achieve their money goals
- Professional women in the peak of their working years – you are likely earning more money than ever before so it’s important to manage money most effectively
- Women on a break from work who want to make their money go the distance
- Retired women who want to manage their financial affairs and ensure they can live their perfect lifestyle in retirement
Here are some reasons why financial planning can be even more important for women than men:
Women Take More Breaks from Their Career than Men
Financial security is not the only thing that governs a person’s life. It is true that money gives you a sense of security and peace of mind but it must also be balanced with all other aspects of life.
Not surprisingly, a new study has shown that women take more breaks from their careers than men do. This can be to take time to care for family or elderly parents, manage the household or focus on other commitments.
Unfortunately, this break in earnings can significantly affect a women’s capacity to save, start investing and build their super fund for the future. Financial planning is instrumental in addressing these hurdles and reducing the challenges that many women have in achieving their financial goals.
Women Suffer From the Compounding Issue of the Gender Pay Gap
In most industries, women earn less than their male counterparts, regardless of their education or qualifications. Currently, Australia’s national gender pay gap is 13.8%.
The significant pay gap between men and women makes it critical for women to take charge of their financial future and make plans to address this unfair disadvantage.
Women Have a Longer Life Expectancy Than Men
According to the Australian Institute of Health and Welfare, women have a life expectancy of 88.0 years as compared to men, with 85.3 years. This is a 3-year gender gap.
With this in mind, more women should carefully consider their retirement plans and how they can achieve their personal objectives.
Whether your retirement plan includes ways to increase your finances and savings, investments that can provide passive income long-term or ways to become debt free sooner, a financial planner can help!
Plan Your Way to Financial Independence
If you want to improve your financial situation, financial advice can help you to stress less and feel more confident about your financial future. If you are seeking a financial adviser, always make sure they hold their own Australian Financial Services Licensee or are a Corporate Authorised Representative of an AFSL.
Financial planning is important for everyone. With the help of a financial planner, you can make the right wealth decisions to grow your savings for the future.
At Novo Wealth, our goal is to empower women on their financial journey.
Novo Wealth offers financial planning in Adelaide that can assist you in making the right investment decisions. Let us help you plan your financial future for you and your family.
Schedule an appointment with our expert financial planner today!