By Grace Bacon
Copyright brisbanetimes
On average, women are earning 21.1 per cent or $26,393 per year less than men due to the higher portion of women working part-time or in sectors that have lower wages. Just as their careers are kick-starting, many women take time out of the fulltime workforce to have a family.
A percentage of these may work part-time for a decade until the kids are at school – some may never return to full-time employment. What does this mean for their wealth creation potential? Then there’s perimenopause and menopause and the health issues that come in midlife that can also impact finances.
Divorce, relationship breakdown and domestic violence can lead to financial difficulties and potentially homelessness. Women over 55 were the fastest growing group to experience homelessness, according to the 2016 Australian census and by the 2021 census had a homelessness rate of 19 people per 10,000.
All these factors contribute to a gender gap in retirement savings. The Association of Superannuation Funds Australia data shows the median balance for women is about 25 per cent lower than for men.
