One in three Australian women have less than one month’s worth of savings, MLC research shows

MANY women have insufficient savings and don’t feel in control of their finances. So, what’s the solution?

ONE in three women have virtually no financial buffer with just less than one months’ worth of savings to survive on if something does go wrong.

And about 43 per cent of women do not feel in control of their financial situation blaming lack of savings, insufficient income, having too much debt or overspending as their main causes of monetary concern.

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Lack of financial knowledge is also causing many women problems after new research from MLC, which quizzed 1000 Australian women, revealed a majority (75 per cent) rate their financial knowledge as average or poor which is likely to lead to fiscal failure.

Many Australian women have very little savings and do not feel in financial control.

While a “man is not a financial plan” — a phrase often heard when experts speak of women and finances — MLC Advice’s general manager Jasia Fabig urges more females to take control of their finances and ensure they do everything they can to set themselves up for a happy life come retirement.

MLC general manager Jasia Fabig urges women to set a financial plan in place.

“We are trying to get women to have a plan, when is the optimal time to retire for example and how much longer to you need to work,’’ she said.

The results showed 66 per cent of women are failing to tip extra money into super, combine this with the gender pay gap and they could fall well short of what is needed in retirement.

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The latest Association of Superannuation Retirement Standard retirement standard figures shows to have a comfortable retirement couples aged around 65 who own their home outright and are healthy should have $640,000 in savings and singles $545,000.

ASFA’s chief executive officer Dr Martin Fahy urged more Australians — particularly women — to focus attention to their savings and plan ahead as early as possible for their retirement.

ASFA’s Martin Fahy urges Australians to take control of their savings both now and for their retirement.

“High levels of indebtedness and the availability of credit has meant that many people are relatively exposed,’’ he said.

“The harsh reality is that women are trying to overcome a persistent and infuriating gender pay gap and unequal allocation of carer duties in the home is leading to women having gaps in their employment.”

He said these problems meant women had to take more proactive steps to try and contribute more to super when they can to make up for these gaps out of the workforce.

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Originally published as One in three Australian women have less than one month’s worth of savings, MLC research shows