Only four in ten millennial women say they’re confident about their financial futures, with young women more likely to invest in their physical health than their financial fitness.
Over half of millennials said they invest in their physical health compared with just a quarter who spend money on expanding their financial knowledge, according to new research from industry superfund NGS Super.
Millennial women spent $400 on average over the last 12 months on their physical health compared with $0 on expanding their financial knowledge.
Additionally, close to a quarter of millennial women admitted to turning a blind eye to their finances.
Laura Wright, Chief Executive Officer at NGS Super said millennial women are putting themselves at risk of never achieving financial independence.
“Despite three in five female millennials believing they’re financially healthy, the sobering truth is that without a real investment of time and money early on, many women will be left scrambling to achieve financial independence and a stable nest egg when it’s time to retire.
“On average, women currently retire with $90,000 less than men. With an average gender pay gap of 14%, the odds are stacked against them, which is why it is absolutely vital that millennial women start saving early and seriously consider how they can invest in their financial fitness.
“Without a commitment to improving financial fitness now, this generation of Australian women is at risk of never achieving true financial independence and could run out of money in retirement.”
The research, which compares millennial women’s attitudes to financial health versus their physical health found that while 77% of young women said achieving financial independence is important to them, less than half are confident about their financial future. Only two in five said they were actively seeking to improve their financial knowledge.
The research highlighted a significant gap between the desire for being financially independent and understanding what’s required to achieve it.
Ms Wright said although many young women aren’t currently spending time and money on their financial health, the same women did express an interest in expanding their financial knowledge.
“The good news is that millennials want to invest more in their financial fitness… There’s a desperate need for more tools and advice for millennials to help them on the path to financial fitness and long-term independence.”
It comes after research from Verve Super found that while millennial women want to be financially independent in retirement, many believe the superannuation system is stacked against them.
As a result, only one in four millennial women think they’ll be able to live comfortably in retirement. One in three said they expect they will have to rely on the age pension in retirement.
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