Who runs the world? Girls. But, if there’s one thing we’ve learned from the gender pay gap, it’s that we’ve got a hell of a lot of catching up to do in order to achieve gender equality worldwide. Did you know that this week marks the end of the extra two months after the end of the financial year that (on average) Australian females need to work in order to earn the same annual salary earned by their male counterparts!
To mark “Equal Pay Day 2023”, employers are (once again) encouraged to make gender equality a priority in their businesses.
While the employers work on closing the gap, let’s get your estate plan in order… (because this sure as heck was not something we ladies were quizzed on in school).
So, why plan your estate now?
Well, for starters, did you know that women have a longer life expectancy than men? Yeeep. Plus, our lower lifetime earnings mean that we as a group are more likely to see our living standards compromised during our golden retirement years if a solid estate plan isn’t put into place. (We could keep ticking off this list, but you get the gist).
Ready to learn more? Here are a few things to bookmark when organising your estate plan:
In 2022, women in full-time work positions pocketed an alarming 14.1% less than men (on average). The sad truth is that women generally earn less than men, which means that women retire with less super than men, and therefore receive lower compulsory employer contributions. (Damn. And we haven’t even discussed parental leave and primary caregiver duties yet… but more on that down below).
The stats also tell us that women tend to live longer than men, so it only makes sense that as women, our superannuation fund should actually have more than men, no? The maths is just not adding up. But, alas…
Yeah, Beyoncé ain’t kidding. Women are more likely than men to take a break from their careers – you know – to grow literal humans, recover from childbirth, take parental/maternity leave, care for their families and look after their elderly parents when and if the time comes.
And while carer payments are available from the Australian government, these payments do not make super contributions that employers would typically make, so really, it’s women who are falling behind, by no fault of their own.
The big D-word also kinda throws a spanner in the works, in every aspect of life. Divorce is a stressful event for anyone at the best of times. Still, studies have shown that it’s (shock horror) women who often experience the pitfalls of divorce, like financial and emotional distress, as well as mental health decline. Ugh.
According to a UBS Global Wealth Management report, 56% of married women leave control of major financial planning and investing decisions to their spouses… so it only makes sense that some women are left confused, overwhelmed and totally unsure as to how to navigate it all. This is why creating an estate plan is so important.
Looking for a general estate planning checklist? We’ve got one right here.
Whether you’re single, married, in a de-facto relationship or divorced, as we’ve discussed in this guide, no matter your marital status or net worth, if you identify as a woman, it pays to get your estate plan in order sooner rather than later. And if your head is spinning and you have absolutely no idea where to start? We’ll help you set those wheels in motion.
Disclaimer: The content of this blog is intended to provide a general guide to the subject matter. This blog should not be relied upon as legal, financial, accounting or tax advice.