Cydney O'Sullivan

Financial Facts Australian Women Need To Know

As medical science paves the way for women to live longer, healthier lives, the financial picture for Australian women has not kept pace. Despite the Women's Liberation movement and other efforts at equality, Australians still face a rather gender specific gap on the financial front. While there is an exception to every rule, the picture painted by government statistics makes it quite clear that most women have only themselves to depend on when it comes to financial security and personal well being, especially in the years of retirement.

According to the Australian government, 66 percent of all people within the country over the age of 80 are women. A total of 42 percent of women between the ages of 70-79 live in private dwellings, but only 14 percent of those 80 plus can say the same. Fifty-five percent of women over the age of 80 live alone. The financial picture for these women is not as rosy as many might think. And, with the pension age slowly rising from 60 to an anticipated 65 by the year 2013, the need for women to take financial control of their lives has becoming evident.

Many once believed, and some still do, that if a woman got married, raised her children and helped her family, she would be set for life. While this is the case for some, the figures do not bear this out as the only route a woman should take to prepare for her own future. For example, the Australian Bureau of Statistics reports:

• The crude divorce rate in Australia was 2.8 per 1,000 in population in 2001.
• The 2001 median age for divorce was 42 years for men and 39 years for women.
• Among couples, a woman's average contribution to earnings falls between 23 percent and 39 percent, depending on the age and presence of children in a home. This implies that in the event of death or divorce, a woman would likely lose about 70 percent of her lifestyle/income.
• Women are more likely than men to rely on a government pension or allowance than a wage or salary, their own business or superannuation.
• Unfortunately, Australian women do face some obstacles in taking control of their financial futures, especially if they intend to work at average jobs. According to the Australian Bureau of Statistics, the gender wage gap has increased, rather than decreased, since 1994. In addition to this, the average weekly total earning for women falls in around $611.50 versus men's $897.50. This is regardless of hours worked per week. Add to this the fact that women are three times more likely than men to work part-time and the likely need for a different tactic becomes clear.
• According to "The Importance of Saving over the Life Cycle: A Woman's Perspective," the main factors that impact a woman's ability to save include:
• The longer life expectancy, which makes a need for greater retirement savings necessary.
• A shorter duration in the paid workforce on average than men.
  Lower incomes and lower wages, on average, than men.

There are steps Australian women can take to change their financial outlook. From taking advantage of different income possibilities and even work-at-home businesses to learning to shave the budget in favour of savings, the possibilities are limited only by a woman's imagination.

I asked some of my very successful friends how they find balance in life in these hectic days and here is what my friend Michael Laulund had to say:

 “Over lunch one sunny afternoon, Michele, a friend asked her workmate, Garry, and myself if we would like to do a quick exercise. (If you would like to try it now, as you read this, please feel free to do so). Michele said, “Sit up straight, close your eyes, take three deep full-lung breathes and exhale slowly on each breathe. Now while your eyes are relaxed and closed, think to a near future. Think to a near future where you have a passive income that covers all your expenses. Think to a near future where you are free to do anything you wish to. Think of how you spend your days and what you do in your career. Tell me now, say out aloud, what your career is.” I smiled and said, “Investing in businesses and real estate… exactly what I’m doing right now.” What did you say just now?

This is your dharma, your true calling, as you see it in this moment. If you are living your dharma, as I am, you would surely agree, work feels like play. When your career becomes hectic, you feel a sense of excitement, rather than a sense of stress. When your work begins to become mundane, you proactively seek out new ways to grow, because ‘this stuff is just so much fun!’ When you start to feel uncertain in your work, you start to feel a sense of anticipation, because you know you are about to learn some thing of value. Your dharma is your way of giving back; actions born out of your gratitude.

During your dharma, you feel a great sense of contribution. You also find ways for the various parts of your life to blend into one another because you want to share your life with your loved ones.

You choose to put your priorities firmly in the forefront and manage the time you give to each priority. Remember, children spell love, T - I - M - E.

However, if you are not living your dharma, you will not be experiencing what I have just described. Garry answered, “I see a career that is so far from what I’m doing now.” Michele caringly said, “Isn’t that interesting.” Michele then asked with focused concentration, “If life is too short, what should you do now, continue on your current path, or create your own financial freedom and proactively pursue your dreams?” So, are you living your dharma, and if not, what do you intend to do now?

Cydney O'Sullivan