Financial Advice for Women — What to Look for in Your SOA

Why Women Need Tailored Advice

Women face unique financial challenges that generic advice may not address. The gender pay gap, career breaks for caregiving or parenting, and longer life expectancy mean that a one-size-fits-all approach to financial planning is unlikely to be appropriate. Your Statement of Advice should recognise these factors and provide recommendations tailored to your specific circumstances.

Superannuation and Career Breaks

Women tend to retire with lower super balances than men, partly due to time out of the workforce. Your SOA should address strategies to close this gap, such as government co-contributions for low-income earners, spouse super splitting if applicable, and catch-up concessional contributions using unused caps from prior years. If your adviser recommends a super strategy, the SOA should explain how it accounts for any planned career breaks or reduced work hours.

Insurance Considerations

Your insurance needs may differ depending on whether you are single, a single parent, or part of a dual-income household with dependents. Income protection insurance is particularly important for women, who may face longer claim wait periods or higher premiums due to industry data. Your SOA should explain the recommended level of cover, the cost, and whether alternatives were considered.

Investment Strategies

Women often have different investment preferences and risk tolerances. Your SOA should reflect your personal goals and risk profile — not a generic or male-centric default. Check that the recommended asset allocation aligns with your time horizon and objectives, and that the adviser has considered your full financial picture, not just individual products.

Fee Disclosure

As with any advice, fee transparency is critical. Your SOA should clearly disclose all fees — upfront, ongoing, and product-related — so you can assess whether the advice represents value for money. If fees are unclear, ask your adviser to explain them before proceeding.

Superannuation and Career Breaks

Women in Australia face a significant superannuation gap compared to men, driven by the gender pay gap, career breaks for caring responsibilities, and longer life expectancy. Your SOA should specifically address how to close this gap. Strategies may include: spouse contribution splitting, making personal contributions during career breaks (to take advantage of the government co-contribution), and catch-up contributions when you return to work.

If you are taking time out of the workforce, consider whether the government will make super contributions on your behalf while receiving Parenting Payment. Also consider whether your partner can make contributions to your super account to keep it growing during your career break.

Insurance Considerations for Women

Insurance needs can differ for women. Income protection should consider specific conditions that disproportionately affect women (such as certain autoimmune conditions and mental health conditions). Life insurance should cover the cost of children's care if you are a primary carer. Total and permanent disability (TPD) insurance is important if you are unable to return to work.

Consider the interaction between insurance held inside super and outside super. Insurance inside super is convenient and premiums are paid from your super balance, but this reduces your retirement savings. Insurance outside super is paid from your after-tax income but preserves your super balance.

Retirement and Aged Care Planning

Women typically live longer than men and may spend more years in retirement. Your retirement plan should account for this. Consider strategies that provide sustainable income over a longer retirement period. The Age Pension becomes more important for women who may have lower super balances due to career breaks.

Aged care costs are a significant consideration, particularly for women who are more likely to require aged care services. Your SOA should address how you will fund potential aged care costs, including the means-tested care fees and accommodation costs. Consider the interaction between your home, super, and Age Pension when planning for aged care.

Frequently Asked Questions

How can I close the super gap after a career break?
Strategies include: spouse contribution splitting, making personal deductible contributions when you return to work, using catch-up contributions (if your balance is under $500,000), and taking advantage of the government super co-contribution.

Should I have insurance inside or outside super?
Both have advantages. Inside super is convenient but reduces your retirement balance. Outside super preserves your super but costs more after-tax. Many women benefit from a combination approach.

How does divorce affect my super?
Super is considered property under Australian family law and can be split on divorce. A super split can be done through a court order or a superannuation agreement. Seek legal and financial advice before agreeing to a super split.

What aged care costs should I plan for?
Aged care costs include: accommodation costs (refundable deposit or daily payment), means-tested care fees, and basic daily fees. The costs depend on your assets and income. Planning ahead can help you manage these costs effectively.

What Financial Advice Typically Costs

What does advice cost in practice? The typical ongoing fee sits around $4,700–$4,800 a year — a figure that has climbed 67% in five years, though annual growth has cooled to roughly 4%. Starting out, expect an initial Statement of Advice to be priced between $2,000 and $3,500, with specialist hourly rates anywhere from $300 to $600. Since FOFA banned commissions on investment advice, fee-for-service billing has become the norm.