“Mum, what does gender equality mean?”

I recently helped my 14-year-old with her Commerce homework, and looking through the infographic from the Australian Human Rights Commission (1), it occurred to me that while some financial aspects of gender equality have improved—many others have a long way to go.

Women still have significantly less superannuation than men. According to the Commission, in 2015-16 the average superannuation balance for women aged 60-64 was just half of those of men. That’s $113,660 less money at retirement than the average  male (1).

Women also continue to earn less than men. The national gender ‘pay gap’ is 15.3% and it has remained stuck between 15 – 19% for 20 years. In today’s terms, women take home $251.20 less than men each week (full-time adult ordinary earnings)1. So they receive less income, but are often working harder, as, according to the Commission, women have to work an extra 56 days a year to earn the same pay as men doing the same work!

The reasons for these statistics are well documented, including women taking time out of the workforce to raise a family, returning to work on a part-time basis, or working in industries that generally pay less.

It’s not all bad news

On the positive side, the number of women on the boards of the top 200 companies has increased from 8% in 2009 to 26% in 2017—although this was due largely to the diversity policy implemented by the ASX Corporate Governance Council in 2010.

On a personal level, there are many things that you can do to improve your situation and reduce the financial difference between yourself and the average male worker. Top of the list is awareness.

Do you know what your financial position is? Do you have a plan for your future? Have you sought advice about how to get ahead? I have worked in the financial services industry for nearly 30 years and it still amazes me how many women defer to their male partners on financial matters. That said, there are lots of women I meet that understand their current financial position and where they are headed. They are empowered by this knowledge and confidence to make financial decisions on their own.

How to take action

Here are some simple things you can do today to improve your financial position:

Think practically about spending

If you have a budget – great. Keep track of your spending on one of the many apps available to see if you really stick to it.

If you don’t have one, work out how much you need for your non-discretionary spending (bills, food, rent, loan repayments), how much you should be saving for longer-term goals and how much you can set aside for discretionary spending (clothes, entertainment, holidays).

Plan for the future

Think about your retirement and whether you are going to have enough to live comfortably. Retirement might be a long way off for some—or just around the corner for others. But understanding your position and having a plan for when you stop working is paramount.

There are many ways to boost your super depending on your age, so seek advice to work out the best strategy for your situation.

Have an exit strategy for your debt

Buying a house or an investment property is really exciting and an important step on your financial journey. But do you know how you are going to pay off your debt—and how it will take?

Don’t just take a set and forget attitude to the loans that you have. Make sure you have a competitive rate on your home loan (call your lender and ask for a more competitive deal) and be pro-active about paying down your credit card or personal debts.

On a macro level, gender equality and more specifically the financial gap between women and men is an important measure of the progress we are making as a nation. On a personal level, though, think about how you fit into the picture. Be aware and proactive about your finances, seek professional help from a financial specialist and maximise your financial position so that you can work towards a positive financial future.

This article first appeared in HerCanberra.

 1. humanrights.gov.au/education/face-facts/face-facts-gender-equality-2018
Milestone Financial Services Pty Ltd (ABN 68 100 591 508) trading as Milestone Lending Solutions is an authorised representative and credit representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee 232706. This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.