(Australian Associated Press)

The gender pay gap means men receive $12 billion more in employer superannuation contributions each year than women.

Analysis of ATO tax file median balances also reveals that women retire with 36 per cent less super than men and women have less super at every stage.

The super balance gender gap begins to expand when a woman hits her 30s, increasing from just under seven per cent for women in their late 20s to almost 35 per cent once a woman reaches her late 40s.

And one in three women retires with no super balance at all, according to a 2016 Senate report.

A report by financial comparison website Finder reveals women retire with an average $122,848 compared with men who retire with $154,453.

Meanwhile, the Financy Women's Index fell in the December quarter, predicting that the time frame for achieving financial equality increased to 101 years.

"We are unlikely to see equality in Australia until the year 2122," Bianca Hartge-Hazelman from the FWI said.

Industry Super Australia strategic engagement director Gemma Pinnell said lifting the rate to 12 per cent as legislated was vital to lift women's savings, with more women than men likely to receive the super rate increase.

"Until we fix inequities in the super system, like the outdated $450 threshold, we will continue to see women retiring with balances that are persistently lower than men," she said in a statement on Monday.

New research reveals three-quarters of women are unlikely to retire having received a full 40 years of super contributions, and yet key government modelling assumes everyone retires with four decades of super.

Women average just 30.1 years of contributions, while men average 36.2 years.

The research to be released this week analyses two decades of Household, Income and Labour Dynamics in Australia Survey to estimate the actual labour force experience of women over their life.

It highlights a dramatic flaw in the Retirement Income Review base case modelling which assumes everyone receives 40-years of super contributions leading to big overestimates in retirement balances.

The report's co-author Roger Wilkins said it "seems likely" COVID would have increased the unpaid work disparity last year.

"The increase in child care provided at home brought about by closure of child care centres and learning from home is likely to have been disproportionately borne by women," Mr Wilkins said.

A recent retirement survey, commissioned by Industry Super Australia, found that on average women spend 12 years less in the full-time workforce than men, with that time away from work having a dramatic impact on their super balance.

ISA deputy chief executive Matt Linden said modelling based on wrong assumptions had serious ramifications, with some wanting to cut super for millions who otherwise wouldn't save enough for retirement.

"This would be a terrible outcome as a more realistic working life pattern shows the current super rate is not adequate for most women to fund a secure retirement," he said.

Colin Brinsden, AAP Economics and Business Correspondent
(Australian Associated Press)

Peter Costello hopes the Australian economy won't still need a record low cash rate in 2024, as repeatedly flagged by the Reserve Bank.

Australia's longest-serving treasurer understands RBA governor Philip Lowe is trying to reassure everybody the central bank will provide support as long as it is needed.

"I like to hope that the cash rate won't be at 0.1 per cent in 2024 because that would tell me the economy is strong and doesn't need the kind of life support that 0.1 per cent represents," the former treasurer told the Australian Financial Review Business Summit in Sydney.

"These rates are emergency rates, they are for emergencies."

Mr Costello, who is chair of the Nine Network and the Future Fund, said it is critical for both central banks and government to be thinking of an exit strategy from their support measures to be able to face the next crisis.

Dr Lowe will address the summit on Wednesday.

Mr Costello's comments came as both business and consumer confidence jumped amid signs of a robust recovery from last year's recession, despite some tapering of government support.

The influential National Australia Bank business survey showed confidence rose further in February to its highest level since 2010, while conditions also returned to multi-year highs after dipping in the previous month.

"This is a very positive survey result," NAB chief economist Alan Oster said releasing the report on Tuesday.

"Importantly, we're starting to see an uptrend in business hiring and investment activity."

The rise in confidence was broad based, with all states and industries recording an increase, except retail.

"This says the economic recovery has very strong momentum, and even though government support is tapering, businesses are increasingly confident the economy will continue to improve," Mr Oster said.

Commonwealth Bank economists estimate job losses of up to 110,000 when the JobKeeper wage subsidy expires in March, with jobs in travel-sensitive sectors like transport, accommodation and arts and recreation most at risk.

"However, given the strength of the leading indicators of the labour market we expect that the overall impacts on the labour market will be short lived and any negative impact on spending will be minimal," they said.

Consumers too have a renewed spring in their step following last week's national accounts, which Prime Minister Scott Morrison described as "remarkable".

The weekly ANZ-Roy Morgan consumer confidence index a pointer to future household spending jumped 1.5 per cent, with four out of its five sub-indices showing strong gains.

ANZ head of Australian economics David Plank said the rise was likely in response the December quarter national accounts, which showed the economy had racked up two quarters of growth above three per cent for the first time.

It also coincided with other figures last week showing job advertising soared 13.4 per cent in February, indicating further strong employment gains are possible in coming months.

The National Skills Commission's preliminary vacancy report for February also released on Tuesday showed a seven per cent increase in job ads, the 10th consecutive monthly rise to be 24.8 per cent higher over the year.

Mr Morrison told the AFR conference the national accounts highlight the economy's "remarkable comeback", growing by 3.1 per cent in the December quarter, led by the private sector and outperforming G7 countries and the OECD average.

"Household consumption was strong, backed by confident Australian consumers, whose incomes have been supported through the crisis, also increasing retail spending," he said.

Daniel McCulloch
(Australian Associated Press)

Unemployed workers will be given an extra $50 a fortnight once coronavirus supplements are scrapped, but bosses will be able to dob in anyone who turns down a job.

The federal government is boosting the permanent base of the dole to $620.80 a fortnight.

The increase works out to an extra $3.57 a day.

People will also be able to earn $150 a fortnight without affecting their welfare payments.

The measures are expected to cost $9 billion over four years and lift JobSeeker to 41.2 per cent of the minimum wage.

But the modest increase falls far short of the $150 coronavirus supplement, leaving bitterly disappointed welfare groups to describe the boost as a heartless betrayal.

Prime Minister Scott Morrison linked the new rate of JobSeeker to the vaccination rollout, saying it marked a new chapter in the country's response to the pandemic.

"We are moving from short-term emergency measures to long-term arrangements that people can rely on should they find themselves out of work," he told reporters in Canberra on Tuesday.

Mr Morrison described the increase as the single largest year-on-year boost since the 1980s and brushed off criticism from community groups.

"I have no doubt that at whatever rate you set the payment, there will always be suggestions by some that it should be more," he said.

"There'll be some who suggest it should be less.

"That's why a government has to exercise judgment in getting that balance right. Not just in the setting of the payment, but also the conditions that sit around the provisions of that payment."

When the plan was presented to a coalition partyroom meeting, one MP described the JobSeeker increase as unaffordable, and said they could not justify the country going any further into debt.

The modest increase will be paired with much tighter eligibility rules and harsher mutual obligations for the 1.3 million people still on JobSeeker payments.

A government-run hotline will be established for bosses to dob in welfare recipients who are offered a job and do not accept.

Individuals may have their payments docked if they cannot produce a valid reason.

People on JobSeeker for more than six months will have to work for the dole or engage in an "intensive training" program of short courses.

Welfare recipients will have to attend face-to-face meetings with employment agencies and apply for at least 15 jobs a month.

This will increase to 20 jobs a month from July.

Labor will not stand in the way of raising the JobSeeker rate but wants to work through the detail of the additional mutual obligation requirements.

Opposition frontbencher Linda Burney said the government would need to introduce legislation this week if it wanted to change the rate.

"The government has indicated there would be a trade-off between increasing the rate and additional mutual obligation requirements," she told a caucus meeting.

"We want people to live in dignity, we want people to alleviate poverty and we want to get people into jobs."

Greens senator Rachel Siewert described the JobSeeker increase as a cruel joke.

"This is an appalling slap in the face for all those people trying to survive on JobSeeker," she said.

"This will mean people going without meals, without medication, without the funds to pay for heating or cooling.

"We will not stop campaigning until we have an increase that is over the poverty line."

Money and Life
(Financial Planning Association of Australia)

Are you guilty of changing your spending habits when you're in a relationship? Do you have a financial plan, or are you relying on a partner to take care of you in retirement? Whatever your situation, there's never been a better time to step up and take charge of your finances.

Your relationship status can have a big impact on your finances. From spending and managing your money, to the types of investments and purchases you make, romantic partners are a big influence.

Some of life's biggest financial decisions are made together with a partner. Moving in together, buying a house and having children are all big triggers for differences in your spending habits to crop up.

Whatever your relationship status, the most important thing is to make sure your finances are sound for you. This is especially true for women, who face extra hurdles to financial freedom. On average, women retire with 47 per cent less super than men, so it pays to have a clear financial plan.

When spending habits don't align

Do you splash your cash on everything you desire, while your partner steadily saves for a rainy day? Or vice versa? When spending habits don't align, it can cause tension in a relationship. One study found that finances were a contributing factor in 42 per cent of divorces and separations.

Lying about your spending might feel tempting when you and your partner have different attitudes to money. But it's likely to lead to a loss of trust, and eventually relationship breakdown. Financial infidelity is on the rise however, with one-in-three adults admitting to hiding purchases, bank accounts, bills or cash from their partner.

Read more: Are you cheating on your partner with money?

How to get on the same page

The best way to get in front of these issues is to talk about your finances early on. Having open and honest conversations about your attitudes to money, your financial goals and what you expect from each other will help build a strong foundation for your relationship and your finances.

It's quite likely that you won't be in the same financial situation as your partner, so talk through things like your:

• Income
• Expenses
• Assets and investments
• Any debts or loan repayments you may have
• Your individual and shared financial goals and how you'll reach them.

Being honest from the outset also means not overspending to impress a potential partner. Splitting bills 50/50 can be a good way to keep the relationship equal and ensure both parties feel empowered. Just keep in mind that one partner may have less disposable income than the other, or more expenses to cover. Tailor your spending so that you both feel comfortable and can meet your other financial obligations.

Five important issues to consider before tying the knot

Dealing with debt

It's likely that you'll need to borrow money at some stage of life. In fact, nearly two-thirds of working Australians have some form of consumer debt outside of a home loan, according to research by ING.

If you're in a relationship, be careful about taking out credit cards or loans in both your names. Understand that if you do, you're both responsible for repaying the debt. In many cases, if the lender can't recover the loan from one party, they're entitled to recover it from the other. Any default on your payments will affect both your credit scores.

If your partner has a large debt, or is unable to access credit for any reason, don't offer to obtain credit on their behalf. Never personally guarantee someone else's debt, or take on any loans or credit cards to help clear their debt.

There may be other ways you can support your partner while they're repaying the debt, such as contributing more to household bills and expenses for a time. Encourage them to repay the debt themselves and keep them accountable. You want to see clear progress towards paying off the debt, as it shows their money management skills and that they take the issue as seriously as you do.

Read more: Coming clean about money

Do you need a Prenup or a Pronup?

You've probably heard of a prenuptial agreement, but have you heard of a pronup?

A prenup is a legally binding agreement about what will happen to assets you bring to a relationship if things don't work out between you.

A Pronup, on the other hand, has a completely different purpose. It's focused on planning for a future together, based on shared goals and how you'll work on them from a financial perspective. It's a great way to ensure you're working towards the same financial goals as your partner.

Related: Pronup or prenup: What's the difference?

Could you go it alone?

Whether you're in a relationship or not, it's important to understand and plan for your own financial future. Questions to ask yourself include:

• Do I have enough emergency savings to cover living expenses for a few months?
• How will I afford my/our ongoing living expenses?
• Will I have enough superannuation to support myself / my family in retirement?
• Do I have the right insurance/s in place?
• What is my investment strategy?
• Is my will up to date?

If you're unsure about any aspect of your finances, it's worth getting professional financial advice. A financial planning professional can help you understand your position and what you need to do to reach your financial goals.

Related: Could you go it alone? Making sure a man is not your financial plan

Money and Life
(Financial Planning Association of Australia)

Divorce is the leading cause of financial hardship for women (1). So it's important to take control of your money and plan for a time when you may become financially independent.

Spending priorities

According to a 2014 survey of over 2,000 women conducted by RMIT, 59% have experienced financial hardship as a result of divorce (2) and 80% chose providing for their family as a top financial priority. Only 50% considered a comfortable retirement an important financial goal (3). So, these issues are compounding the deeper, systemic issue of a gap in women's earnings and retirement savings that's cumulatively forcing some women into severe poverty in their senior years.

2016 Financial Planning Week Ambassador Jane Caro recently stated that women over 55 are the fastest growing demographic among homeless people in Australia (4). This is a really alarming indicator of the financial hardship older women are facing. It's also a signal for women of any age to take charge of their financial wellbeing, so they can be ready for whatever the future may hold.

The super gap how much is it?

We know women are still earning less across the board than men. And they're also most likely to be the ones taking time out from their career to care for children and other family members. These are two of the reasons why women can expect to retire with around half the super balance compared with men. Figures from the Association of Superannuation Funds of Australia (AFSA) show the average super balance for women at retirement is $138,150 and $292,500 for men. (5)

When you consider AFSA expects a single person in retirement to live on a budget of $24,108 a year (6) and that's just for a "modest" lifestyle a $138,150 nest egg isn't even going to last a decade. And that budget doesn't include rent or mortgage repayments. So if you don't own your home outright, it's going to be even harder to make ends meet in retirement.

The fallout from divorce

Losing out on owning a home can be one of the many financial consequences of a divorce. After you and your ex have split your assets, you may not have enough left over to buy property in the suburb you call home. Or you may scrape enough for a deposit, but you're starting all over again with a 25 or 30-year mortgage to repay.

This is just one of the financial setbacks women can expect to experience when their marriage breaks up. In their recent 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. (7)

Taking control

If you're currently single, or think of your relationship as rock solid, it's still really important to plan for your financial future as an independent woman. Happily married, or single, women can face financial hardship because of illness or bereavement too. And there's plenty of help available to get you up to speed on important money matters including debt, insurance, investment and superannuation.

In May 2015, ASIC launched a new Women's Money Toolkit to guide women through important financial decisions and support them towards better outcomes for their financial wellbeing. It deals with all kinds of topics from having kids to managing finances in a relationship and you can tailor the content to suit your life stage and circumstances.

If you're a woman living in a regional area of Australia you may have already come across the Regional Women's Financial Literacy Project.

Seeking financial advice from someone who really understands how to support you to make the most of your money, even when you're not earning much, can make an important difference to your financial stability and wellbeing.

Whether you're getting married or divorced, starting a family or retiring, a CERTIFIED FINANCIAL PLANNER® professional can offer valuable advice on preparing for a secure financial future. Find a local CFP professional today using Match My Planner.

For more tips and tricks on how to manage your money, avoid mistakes that can derail your financial future, and secure your financial freedom, download our free eBook.

Sources

1RMIT Survey Women and Money across the generations, 2014, page 23 http://www.financialliteracy.gov.au/media/558801/women-and-money-across-the-generations.pdf

2 RMIT Survey Women and Money across the generations, 2014, page 23 http://www.financialliteracy.gov.au/media/558801/women-and-money-across-the-generations.pdf

3 RMIT Survey Women and Money across the generations, 2014, page 16 http://www.financialliteracy.gov.au/media/558801/women-and-money-across-the-generations.pdf

4Sydney Morning Herald, "Getting sound financial advice is crucial for us all, but especially for women" Jane Caro, 22 August 2016, http://www.smh.com.au/lifestyle/news-and-views/opinion/getting-sound-financial-advice-is-crucial-for-us-all-but-especially-for-women-20160821-gqxwug.html

5ASFA Research and Resource Centre, Superannuation Account Balances by Age and Gender, December 2015, page 3, https://www.superannuation.asn.au/ArticleDocuments/359/ASFA_Super-account-balances_Dec2015.pdf.aspx

6AFSA Retirement Standard, December Quarter 2016 https://www.superannuation.asn.au/resources/retirement-standard

7Sydney Morning Herald, Women with children biggest financial losers of divorce: report, Daisy Dumas, 13 December 2016, http://www.smh.com.au/lifestyle/news-and-views/news-features/women-with-children-biggest-financial-losers-of-divorce-report-20161212-gt92op.html