When it comes to growing their wealth, women face a number of financial hurdles.
Research suggests that on average, women earn 17.7% less than male counterparts.1 Unfortunately, this wage gap remains constant in the Australian workforce.
According to the Australian Government’s Workplace Gender Equality Agency (WGEA) women working full-time in ‘top-tier’ managerial occupations earn on average 27% less each year than men doing the same job, which can equate to an annual difference of over $93,000 in total remuneration2.
In addition to earning less, women are more likely to take career breaks or work part time while raising their children and as a result, their total income over their working life is significantly lower than men.
Earning less can have flow-on effects, such as impacting a woman’s ability to implement wealth creation and debt reduction strategies. The key here is to remember that compound interest is your friend when it comes to investing and can be your worst enemy when it comes to debt. Doing something now, even if it seems small, can have a vast impact over time.
It’s not all doom and gloom. The good news is, you’ve made the first step just by reading this and Freya Financial can provide you with the tools and advice you need to plan for the future.
To find out more on these topics, please click on the links below:
1. Commonwealth Bank (2017). Enabling Change: A Fresh Perspective on Women’s Financial Security. P. 1-62.
2. Workplace Gender Equality Agency (2017). Gender Equity Insights 2017: Inside Australia’s Gender Pay Gap. P. 6-61