The financial risks facing senior women
To say private wealth advisor, author and speaker Lisa Barber knows a thing or two about money would be an understatement. With more than 20 years of financial expertise under her belt, the award-winning businesswoman and entrepreneur has developed a strong reputation of understanding the financial issues affecting Australian women most.
To coincide with the release of her book, A Woman’s Guide to Wealth, we asked Barber to give us a rundown of the main financial issues facing senior women in Australia.
What do you think are the key financial issues facing senior women in Australia, and how would you suggest they face these?
It's the recent findings women retire with 44 per cent less super than men. 70 per cent of single, retired women rely on the full age pension, 39 per cent of single, retired women live in poverty. These are alarming statistics. It goes without saying that the earlier you plan for the day when you stop working the better the financial position you will find yourself in.
Do you feel like enough people are seeking financial advice?
In most cases a client is referred to me from an existing client. This level of introduction usually comes about because they have shared their experience with a friend or colleague. I do think there is a level of uncertainty to what an adviser actually does. The introduction from a trusted source that has experienced professional advice opens up the opportunity to make the difference.
In what circumstances should seniors seek financial advice?
I have a number of clients in their early 70s working full time with no intention of slowing down. This is often due to a culmination of factors, first being that they are physically and mentally able to take on the workload and find the simulation that working brings increases their level of happiness. Structure of their assets is the most important consideration for these clients.
What do you think are some of the key mistakes seniors make when managing their finances?
Taking on too much risk as a consequence to lifelong income.
Do you have any general money-management advice for seniors approaching retirement?
For this group of clients, transition to retirement strategies will become an important part of portfolio construction in the future. This phase may see clients looking to utilise capital accumulated during their working life to meet their long-term living needs. Strategies may include income funding strategies via a trust or pension.
What do you think of Lisa’s take on the risks facing women in Australia? Do you agree with her advice and would you have any of your own to offer?
Let us know in the comments below.
Lisa Barber is a Private Wealth Advisor, author and speaker.
Lisa’s new book, A Woman’s Guide to Wealth: What My Mother Needed To Know is available here.
Related links:
Government benefits to take advantage of in retirement
Super is changing. Should I be concerned?