An alarming new study has just laid bare the financial security gap between Aussie men and women, and it doesn’t make for pretty reading. Although two in five women feel confident about their financial future, three in five men feel this way. This gap evokes more systemic problems related to gender-based economic insecurity, especially for single and divorced women in their 40s.
The national findings paint a picture of our country where one’s sense of financial stability depends highly on demographic markers. Single and divorced women in their 40s are at particularly high risk. Most of them are attempting to juggle a very full life plate. These women are integral to the workforce while managing their children—and soon their ageing parents, making them a critical force to our economy. This constant balancing act undermines their financial health and security.
The data further imply that the strains associated with the stress of balancing multiple roles help explain the insecurity that these women report. Too many are trapped in a cycle of financial stress, where the pressures of today overtake the need for tomorrow’s financial security. This is largely reflected in men’s greater financial confidence. This disparity could be attributed to the different social expectations and levels of support they face.
While this is a conflict that needs to be addressed, experts say all women need targeted interventions that will give them more knowledge and access to finances. Financial education programs have an important role to equip women to understand investment opportunities, savings methods, and retirement preparation. By empowering them with the right tools, we can begin to close the financial security divide.
Societal perceptions of gender roles need to be transformed. What we need to do is build an ecosystem where women feel totally empowered to pursue whatever financial path they choose. Host open conversations around money with your colleagues, friends, and family. This can help ignite a national cultural shift towards shared responsibility for the financial well-being of all Americans.
