A focus on strong performance
SuperRatings' Pension of the Year 4 years in a row4
Australian women might benefit from upping the ante on their financial fitness by building a regular regime that will serve them through every life stage.
Financial Advice Matters financial adviser Sonia Muller,1 who spent 20 years as a financial planner, said the four most common questions she received from both men and women were:
“Most questions remain similar but more and more women are becoming aware of the disparity of their super balances, particularly if they look at their male counterparts or partners,” Ms Muller said.
According to Industry Super Australia,2 three in four women are unlikely to retire having received a full 40 years’ of super contributions during their working life.
“The questions are coming to us from something significant that’s happening in their life or a turning point,” Ms Muller said.
As their working lives wind down and their child raising years pass, some mature-aged women have a little more time on their hands to dedicate to reviewing their financial position.”
Ms Muller said while empty nesters were the most likely to seek the assistance of a financial adviser, it was an important step to consider during the many different stages of life.
“There are many strategies out there particularly when you are just starting out. Start small and make sure you are not being overcharged or undercharged,” she said.
“In mid-life, when thinking about a family or buying a house and getting ahead, cash flow may become more of a priority and adjustments may need to be made to cater for time off work to care for families and study. Budget discipline is typically paramount during this phase.
Try the QSuper budget planner calculator.
“For empty nesters/pre-retirees, typically this is a time when debt is reduced and cash flow increases, which provides you with opportunities to invest more and boost your wealth in preparation for retirement. Maximising salary sacrifice and tax-effective strategies could help you significantly improve your retirement savings during this period of life.”
“For retirees, or those approaching retirement, financial advice may be an option. Setting up your super to consider strategies to reduce risk, maximise benefits such as Centrelink, health care cards and protecting your hard-earned wealth, may help your money last as long as possible.”
Ms Muller said financial advisers encountered different money personalities regularly, with women likely to be one of two extremes.
“You’ll find the spenders who are overspending and the hoarders who like to protect their cash and are scared of risk and investing,” she said.
“You’ll find someone who is very Excel spreadsheet-oriented and then you’ll see a lot of women, and this is a common theme, who are somewhat naïve about money and looking for help.”
Another consideration could be personal financial advice. A financial adviser can help you make financial decisions and plan for the future. They will also take into account your personal circumstances.
Download the QSuper app to check your balance
Log in to Member Online to track your account
Learn more about your personal financial advice options.
1. Sonia Muller, Financial Adviser Sub Authorised Representative No. 300996 | Authorised Representative of Financial Advice Matters Group Pty Ltd ABN 11 605 631 598 Corporate Authorised Representative No 1234989 of Alliance Wealth Pty Ltd AFSL 449221 ABN 93 161 647 007 | Credit Representative No 480095 of Centrepoint Lending Solutions Pty Ltd ACL 377711 ABN 40 100 947 804 | www.centrepointalliance.com.au/AW
2. Media Release, 8 March 2021, Industry Super Australia, Crucial government retirement modelling fails to reflect women’s interrupted careers, at www.industrysuper.com/media/category/media-releases
General advice in this article has been provided by Sonia Muller of Financial Advice Matters Group Pty Ltd, Corporate Authorised Representative No 1234989 of Alliance Wealth Pty Ltd AFSL 449221. It has not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, information provided by Sonia Muller is based on her understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change, you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly neither Alliance Wealth Pty Ltd not its related entities, employees or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.