Time for women to celebrate

March 8 marks International Women's Day - a good time for women to embrace opportunities to achieve financial independence.

After more than 30 years in the money business I’ve seen women make great strides with their personal finances.

The gender pay gap is narrowing, lenders no longer shun single women when they apply for a home loan, and little by little, women are gaining a larger slice of the superannuation pie.

However, there is still plenty to be done, and a key step is for women to take control of their financial wellbeing.

The basic rules are the same for all of us

The same rules of sensible money management apply to both men and women. Budget to take control of your cash, spend less than you earn, save the difference and consider investing in quality assets.

It’s a simple formula, and typically it works. But, what some women may not realise is that they often have the ideal qualities to be successful investors.

Research shows women often enjoy higher gains than men on investments like shares. That’s not necessarily because they intuitively pick the top performing stocks. Rather, women tend to hold onto their shares over time, enjoying decent long-term gains and minimising brokerage costs.

Women are also less inclined to be overconfident about investing. They typically research the market thoroughly – and this same sure-but-steady approach can be seen among the vast numbers of women who successfully run their own business.

The challenges for women

On the downside, women often face unique hurdles. In particular, women account for 70% of all part-time employees, and that can mean earning a lower income, as well as lower employer-paid super contributions. Women are also more likely to take time out of the workforce to raise kids or care for ageing relatives.

As I mentioned earlier, women’s slice of the nation’s super savings is growing though. In 1994, women held just 23% of Australia’s retirement savings. Today that figure is 61%. Nonetheless, significant numbers of women still retire with next to nothing.

The solution is for women to make their own financial wellbeing a priority. In my experience, women are often much better at looking after their physical health than men, and now it’s time to think about gaining the edge on your money to better handle life’s ups and downs.

Help is available

Australian women can take advantage of a helping hand. A wide range of resources are available including some excellent reading material from reputable websites, such as ASIC's MoneySmart.

But for tailored advice, it’s hard to past a professional financial planner. And, for many women, having an expert on their side can be like having a money mentor – someone to keep you on track with spending, debt management and saving.

Talk to your financial adviser about a personalised to-do list of steps that will boost your financial health and get your money matters in better shape.


Paul Clitheroe is a founding director of financial planning firm ipac, Chairman of the Australian Government Financial Literacy Board and chief commentator for Money Magazine.

Explore your goals

Try our online tool to explore, prioritise and create your own goals timeline.

Start exploring

Discover a new way of banking

Imagine a bank account that helps you keep on track and tells you what's safe to spend.

Learn more

Managing your money

Find out how you can make a big difference to the opportunities and lifestyle you enjoy today and tomorrow with our online module. 

Begin module

Want to keep up to date with the latest news, tips and insights?

Sign up now

Recommended articles

Important information

Show more

© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.