Why Aussie women aren't getting a fair go
By Jessica Power
Hit the streets and ask anyone to provide one reason why they're proud to be an Australian, and you're almost guaranteed to hear two words in response: 'fair go'.
Those two words represent one of Australia's most recognisable values.
We are a group of diverse people, with different backgrounds, experiences, and aspirations, and we are offered an equal opportunity to be our best.
Women aren't getting a fair go
Everybody is meant to get a fair go.
Which is why the wealth gap between men and women in Australia is so disappointing. The theme for this year's International Women's Day is Count Her In: Invest in Women, which brings attention to this important issue.
As a nation, we have worked hard to ensure Australia continues to reflect the best of the fair-go ideal, but the reality of the financial inequality between men and women stands in stark contrast to this treasured value, with women facing unique challenges in building and protecting their wealth.
They are more likely to take career breaks during their prime earning years, and, in general, earn less money than men over the course of their lives.
Wealth gap impacts superannuation
According to a recent report by the Women's Economic Equality Taskforce, on average, Australian women earn $1 million less than Australian men across their careers.
This trend of course flows to superannuation: in the 2019-20 financial year, the median superannuation balance of women aged over 65 was $168,000 for women, compared to $208,000 for men.
In contrast to gender earnings ratios, women tend to outlive men. Not only do they have less wealth to call on later in life, but women are then required to make their money last longer.
Single women are also less likely than men to own their own home and understand the impact of home ownership on an individual's wealth.
It's hard to reconcile these realities with our universally accepted fair-go value.
Fewer women are investing
Concerningly, the second HSBC Investor Insights Survey identified a drop in the number of women investing outside the common pillars of superannuation and the family home over the past year.
The decline was a part of broader trend among self-directed investors but more marked among women than men - with less than one third (32%) of women now identifying as owning assets other than super, cash or a principal place of residence.
This shift can somewhat be attributed to broader economic factors and the rise in cost-of-living expenses.
It also clearly points, however, to the issue that women are investing less, and considerably less than men - meaning there is still much work to be done to even the playing field.
Empowering women to build wealth
On an individual level, women should feel empowered to make a decisive impact on their own financial future.
Despite the challenges women face, there are a range of actions they can take to improve their financial outcome and help bridge the gap.
It starts with taking the plunge.
A major misconception often perpetuated around wealth creation is how much somebody needs to begin investing. Often, people imagine this number to be well into the thousands.
Investing what you can, and getting started as soon as possible, is more impactful than waiting to 'have enough money' to invest, but never taking that final step.
As a society, we should be working together to shift this collective mindset that acts as a handbrake for wealth creation.
HSBC's Investor Insights Survey also found that women generally invest less frequently than men, with the latter more likely to do so monthly.
Additionally, the survey said Australians are investing less money than they were a year ago, as cost-of-living challenges bite.
For women, building investing into their budget over the long-term will help ensure they maintain a regular investing pattern, providing a useful buffer to manage the curve balls life will inevitably throw.
Taking part in investing puts women one step closer towards achieving financial freedom and security.
It is important that women seek out ways to educate themselves on investing as a way to create greater financial security.
Empowering women means they are given a fair go when it comes to investing and ultimately it will play a role in helping to make them feel more confident about their present and future.
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