The insurance crisis facing one in five Australians

Pay up or lose everything - the choice facing homeowners, revolutionary low cost super fund launches, and men still earn 22% more than women. Here are five things you may have missed this week.

Pay a fortune in premiums or risk losing everything

As Cyclone Alfred crashes into Australia's east coast, families facing a cost of living squeeze may be tempted to ditch home and contents insurance.

But new research by The Australia Institute shows this could mean losing three-quarters of their wealth if their home is destroyed in a flood, fire or other natural disasters.

The report finds a growing number of households are experiencing "extreme" home insurance affordability pressures.

Already, almost one in five Australians admit their home is uninsured or underinsured.

"Australian families are facing an almost impossible choice when it comes to home and contents insurance," said Matt Grudnoff, Senior Economist at The Australia Institute.

"They either find the money to pay ridiculous premiums or risk losing everything they own."

Separate research by Finder shows 69% of homeowners say their premiums have gone up in the past 12 months.

Finder's Peta Taylor, says switching to a new insurance company can see home owners score valuable savings on cover.

"If you find a better or cheaper policy you can switch at any time - even if you've paid 12 months up front - your insurer will refund you the days remaining on the policy," she explains.

An Aussie first: A super fund made up entirely of ETFs

Robo adviser Stockspot has launched Australia's first ETF-only superannuation product designed to keep costs low.

According to Stockspot, Australians collectively pay $32 billion in super fees each year.

Stockspot Super aims to change this by providing a super option made up of a low cost basket of exchange traded funds (ETFs).

Ongoing fees and costs will apply including an admin fee, which will only be charged on the first $500,000.

Chris Brycki, founder and CEO of Stockspot, says, "Australians are paying billions each year in super fees that could be compounding towards a better retirement."

He adds, "Super funds should be investing in assets that are transparent, fairly priced, and efficient-not complex structures that benefit fund managers more than members."

Seven in 10 employers have a gender pay gap in favour of men

Australia has a way to go on gender-equal pay packets.

The Workplace Gender Equality Agency (WGEA) says women earned total average remuneration of $101,961 in 2023/24 (the latest figures) compared to $130,386 among men.

The difference of $28,425 (about 22%) can arise from payments beyond base salary such as super, overtime and performance bonuses.

The higher the average total remuneration at an employer, the more likely they are to have a large gender pay gap in favour of men.

Some of our best-known companies have the biggest gender pay gaps favouring male employees.

This includes Radio 2GB in Sydney - 51% in favour of men, and Macquarie Bank 41.8%.

WGEA CEO Mary Wooldridge, says there is an increase in the number of employers working to understand what is driving their gender pay gap.

However, she adds, "For employers that haven't made progress, it's time to ask why - dig into the data to find out what's causing any gender differences."

The gender pay gap is the difference between the average or median remuneration of men and women, expressed as a percentage of men's remuneration.

It's not the same as equal pay.

Equal pay has been a legal requirement since 1969.

Citigroup mistakenly credits customer account $US81 trillion

It's something most of us only dream of happening.

Instead of crediting a US customer's account with $US280, Citigroup mistakenly credited the account with $US81 trillion - the equivalent of $A51 trillion.

For context, Australia's entire housing market is worth $11 billion.

However, Reuters reports that the funds never actually left Citi.

It took three layers of employee checks but the error was finally picked up before the cash left the building.

It's not the first time Citi has had these sorts of near misses.

There were reportedly 10 near misses of $US1 billion or more at Citi last year.

This sort of error - when it does happen - is far from a dream come true for account holders.

Back in 2009, a New Zealand couple fled the country when Westpac incorrectly credited their account with almost $A8 million instead of the small overdraft the couple had applied for.

It took several years to track down the so-called 'accidental millionaires', but they ended up behind bars on charges of fraud and theft.

Don't drop the ball to scammers this footy season

With the footy season kicking off, fans looking to get their hands on sought-after tickets are being urged to watch out for scammers especially on social media.

The Australian Banking Association (ABA) says Australians lost more than $26 million to buying and selling scams last year, including fake ticket sales.

ABA CEO Anna Bligh advises footy lovers to remain vigilant to dodgy ticket sales on fake websites and online marketplaces, especially in the lead up to sold-out or blockbuster games.

"Scoring a fake ticket from a dodgy seller or website could leave you empty-handed and out of pocket," says Blight. "Worst of all, you will be stuck outside the ground."

If you are going to buy a ticket via social media, don't transfer funds until you're certain there will be an actual ticket at the end of it.

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