AN #IWD2018 MESSAGE TO WOMEN OF THE HASHTAG GENERATION 

By Sally Loane

There are millions of words being written, some wise and comforting, some radical and firebrand, not to mention a wave of powerful speeches in Hollywood and a week’s worth of themed breakfasts being marshalled so none of us will miss International Women’s Day. I’m attending three events and speaking at two this week.

It’s critical for women – and men – to gather in support of our shared goals of equity, and remind ourselves that the status quo cannot remain. March 8 is our day and we need to show up.

But in the sea of #femaleempowerment there is one material thing that will guarantee women of the hashtag generation the ability to #pressforprogress, #leanin and avoid #metoo – and that is to become financially independent.

At this stage of my career, after 35 years in paid work with only short breaks taken for maternity leave, I wish I had done two things – paid more attention to my superannuation and asked various bosses for better pay rises. The fact is that the pay gap for women starts in our 20s, in our very first job, and gets wider across the decades. Most women never catch up, and that early wage gap delivers an even more savage superannuation gender gap, with women today retiring with half the super balances of men.

I am typical of my generation – compulsory super started in 1992, the year my first child was born. I paid scant attention to it, and in fact actively resented the meagre three percent of my pay that was mandatorily hived off into a super fund. I wanted the money for myself and my family, not for some amorphous retirement on the never-never. 

The result of that mistake is that I do not have enough superannuation. It’s not something I’m proud of, but it has made me a warrior for doing everything I can to ensure that the generations of women after me will not make the same mistake.

First rule for International Women’s Day – look at your super fund. If you’ve just defaulted and allowed your boss to select a fund for you, take the initiative to change that. You don’t allow your boss to choose your bank for you, why would you let him or her choose your super fund?

Check on the ATO website or the ASIC’s MoneySmart website to see whether you have more than one fund. If you do, consolidate them into one. Do a bit of research to find out which fund is best for you. It may the one with the best technology, the app that sends you a text if your boss doesn’t deposit your super into your fund. It may be the one that lets you choose, in one Tinder-like swipe to the left, the best investment profile for your age and stage. It might be the no-frills MySuper option that has low fees, and delivers a safe and secure product. It might be the one that rounds up your spare change into your super fund – every coffee nets you another 50 cents which magically turns into thousands of extra dollars in a few years, thanks to compound interest.

And if you find you can’t change your super fund, ask your pay office why not. Unfortunately there are still millions of Australians locked out of choice because of old industrial laws, and if you’re one of them, make a noise about the unfairness of it. It’s your money!

Second rule – a man is not a financial plan. The faster you can control your own financial present and future, the more resilient you will be to everything life throws at you – nothing builds resilience more than knowing you’re independent and in control in a financial and economic sense. Part of this is finding great employers – there are some that not only do their best to ensure women are paid equally for the same work, but who pay female staff the superannuation guarantee during their time on parental leave – and even some which pay women a higher super guarantee rate, knowing this is the best and quickest way to closing the super gender gap.

And if you work in the gig economy, take control of your super, because no-one else will. There are many great fund options in the market tailored for you, many of them digital and very easy to engage with. Stuff as much as you can into super in the early years and it will become a habit for the rest of your working life. 

Finally, the best antidote to poverty in retirement, and to not having enough super, is to engage with your super from the very first paid job you do. Don’t default to ambivalence.

Sally Loane is the CEO of the Financial Services Council.