A survey by Australia’s largest life insurer TAL has found that women rate a good job as the key to feeling financially secure.
The survey asked what made women feel financially secure and a ‘good and secure job’ came in at number one for 52% of women. Despite Australian’s love affair with the property market, less than one third of female respondents (32%) said owning a home was most important. This was ahead of a savings plan at 7%, having superannuation of at least $100,000 at 3% and financial protection via the various forms of life insurance at 2%. Five per cent did not know what was important.
TAL Life CEO Brett Clark said: “It is concerning, but perhaps not surprising that financial protection came in so low. There are many broader studies pointing to low consumer awareness of insurance and financial protection. It is also well recognised that the ability to earn an ongoing income is often an individual’s single largest asset. If your income stops through injury or illness and you don’t have any financial protection, then that can be catastrophic for individuals and families.?”
He said it is important for all Australians, women and men, to focus on all aspects of their financial situation as part of working towards feeling financially secure. “It is comforting to know women see their ability to earn an income as their most important asset but protecting that asset is the vital next step.”
Mr Clark also said there was quite a long way to go to ensure greater awareness and greater access to advice for women and address the challenges experienced by women when it comes to seeking financial advice. That is why both TAL and the Association of Financial Advisers (AFA) initiated the Female Excellence in Advice Award, which is currently seeking nominations.
Catherine Robson, winner of the AFA 2013 Female Excellence in Advice Award and founder of financial advisory firm Affinity Private, urged women to protect what they themselves see as one of their biggest assets. “The research shows that women have rightly identified employment income as an essential prerequisite to financial independence,” she said. “Most women I meet also recognise the importance of their income for their loved ones and carry a level of anxiety about what would happen if they were unable to work. I am proud that the financial advice industry, through the AFA Female Excellence in Advice Award and other initiatives, is encouraging talented advisers to help women turn that lingering anxiety into positive actions to preserve their independence and protect the ones they love.”
The AFA Female Excellence in Advice Award draws attention to the achievements of women in the financial advice profession and the valuable work they do in the community to deliver better financial outcomes for more women.
“The AFA Female Excellence in Advice Award contributes to the diversity debate by recognising the contributions of female financial advisers to the profession, community and the lives of consumers,” he said. “TAL believes that greater representation by women in financial advice is critical to ensure the advice profession properly mirrors community diversity and to help empower women to take more control of their financial future.”
Nominations for the 2014 winner of the AFA Female Excellence in Advice Award close 8 August and the winner will be announced at the AFA National Conference on 14 October. Macquarie Graduate School of Management is offering this year’s AFA Female Excellence in Advice Award winner a full scholarship (valued at $12,000) to complete either a Postgraduate Certificate in Management or an Executive Education Leadership Development Program. All semi-finalists will have the opportunity to participate in a Leadership Master Class as part of the Award Program.
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