How long will my money last?

Women live 4 years longer with half the superannuation of men

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Did you know that recent studies have shown women have significantly less super than men and are living 4 years longer in retirement on average?

The reasons behind this shortfall are often pointed towards raising children, returning to the workforce part-time after having kids, looking after elderly family members and the well-known gender pay gap which is currently 17.3% in Australia.

The Facts

The Workplace Gender Equality Agency compiled evidence that showed women to have an average of 46.6% of the amount of superannuation men have when they retire.

The average life expectancy in Australia is 80 years old for men and 84 years old for women. The interesting thing is life expectancy actually increases as a person gets older. For example, when a person reaches the age of 60 years old, there is a life expectancy increase to 83 for men and 86 for women. These figures do not include further medical advancements and it is believed that many people retiring today will live to they’re 90 years old.

These alarming figures call for everyone (especially women) to be more mindful of long-term savings goals and to have a strategy in place which will balance affordability and lifestyle, both now and in retirement.

Actions

For some, the idea of retirement is a lifetime away and something that you can worry about in the future because now you’re concentrating on owning a home, buying an investment property or going overseas on holidays. However, a recurring conversation we have with our clients’ is that it’s always better to start sooner rather than later, as the sacrifices are much smaller in working to achieve the same outcome. It is possible to create a strategy that allows you to do the things you want now, while also contributing towards your future and ensure you continue to do the things you will want to do later in life. Imagine the feeling of confidence knowing your future goals and finances are on track to be where you want to be.

We can identify your current situation and work with you to determine what you will require to live the life you want now and have the retirement you had planned on when the time comes. A combination of super contributions, investment, tax strategy and low operating costs will all contribute to you meeting your needs in the later stages of life without having to rely on a partner or work much longer than you had anticipated.

Contact us for a free consultation that will help you meet your financial goals both short-term and long-term.