From the way we work to the way we interact with friends and family, the COVID-19 pandemic has impacted almost every aspect of our lives – and now a new study suggests the disruptions caused by COVID have had a drastic impact on the ability of Australian women to make adequate financial plans for their future.
Super fund Equip has found that only 23 per cent of women have come out of the pandemic earning more than they did previously, compared to 32 per cent of men. More men have also seen an increase in disposable income compared to women – 31 per cent of men have seen an increase in what they can spend outside of essentials, compared to just 23 per cent of women.
This in turn has had a follow-on effect on super savings. 29 per cent of men are investing in their own super, while only 17 per cent of women are making similar contributions.
Scott Cameron, Equip’s CEO, says that women are thinking more in the short term than men.
“Increasingly, we’re observing that women are more likely to save and spend their income on short-term priorities, while males are generally much more likely to prioritise longer term investments,” Scott said.
“Our findings show women are taking care of the situation immediately in front of them and their families. This is understandable, and obviously the right priority. However, for those who can afford to, keeping one eye on their financial pot for the future is equally important. Otherwise, women risk prioritising today to the detriment of their tomorrow.”
The findings represent a double whammy when combined with an already wide gender pay gap. According to the Workplace Gender Equality Agency, the current gap between what men earn and what women earn is a disturbing 14.1 per cent. This equates to an average weekly, full-time pay of $1,609 for women, and $1,872.90 for men.
“The data shows us that since COVID, women, when compared to men, are not only earning less and have less left over at the end of the month, but they also have fewer investments at play to build what wealth they do have. There is a risk this all comes together to leave women short-changed when they come to later life,” Scott said.
“On a positive note, we are seeing in recent years that women are increasingly taking control of their finances, but this data suggests there is still a lot of work to be done.”
Let’s get to work!
