The report showed that 59% have experienced financial hardship as a result of divorce and 80% chose providing for their family as a top financial priority. Only 50% considered a comfortable retirement an important financial goal.
These issues, compounded by the gap in women’s earnings and retirement savings, are forcing some women to live in poverty in their senior years.
Figures from the Association of Superannuation Funds of Australia (AFSA) show the average super balance for women at retirement is $138,150 compared to $292,500 for men. The two main reasons for this super gap is that women are still earning less than men and are generally the ones taking time out of their career to raise children and care for other family members.
A significant financial consequence of divorce is not owning a home. Often, after assets are split, there are insufficient funds to purchase a new home. If you do have enough funds for a deposit on a new house, in most instances you will be committing to a 25 or 30 year mortgage.
In their report, Divorce: For Richer, For Poorer report, AMP and the National Centre for Social and Economic Modelling (NATSEM) found the average divorced women has assets valued at 90% less than her married counterpart and can expect to be earning 10% less as well.
Alarmingly, women over 55 are the fastest growing demographic among homeless people in Australia.
No matter your current situation, single, married or divorced, it is important to take control of your financial future – with or without a man.
There are a number of resources available online to help you manage your finances including superannuation, investment and debt. The ASIC Women’s Money Toolkit guides you through important financial decisions and supports you towards better outcomes for your financial wellbeing.
Seeking expert advice from a certified Financial Planner who will take the time to understand you and your personal circumstances is a huge step towards taking control and gaining back your financial independence.Let's Talk