For a new generation of Australian kids, the impressive performance of the Matildas in the FIFA Women’s World Cup, securing a historic fourth-place finish, captivated and provided the inspiration to strive for more. This feat is not just a testament to the hard work and dedication that women athletes invest in sport; it has ignited discussions around equity across our society.
The statistics for the Matildas’ captivating journey were extraordinary. The semi-final match against England reached a peak of 11.15 million viewers, setting new TV records. This surpassed iconic events like the State of Origin game and the NRL and AFL grand finals, drawing over seven million Australian viewers.
However, with the public spotlight shining on the Matildas and women’s sport, gender disparities remain evident. Male sporting counterparts often command significantly higher pay in comparison.
Does this play out across the broader landscape? The most recent data from the Australian Bureau of Statistics (ABS) paints a promising picture of progress in gender wage equity. A narrowing gender wage gap offers a hopeful sign of a societal shift, attributed to the robust growth of female wages, which has outpaced that of male counterparts over the past year. This shift is fuelled, in part, by the substantial increase in full-time female employment, a factor that is reshaping wage dynamics and challenging traditional norms.
The disparity in average weekly ordinary full-time earnings, a long-standing indicator of the gender pay gap, has decreased for the second consecutive cycle, hitting a historical low of 13.0 percent. This reduction corresponds with the upswing in wages for full-time roles within sectors largely dominated by women, such as teaching and nursing.
Presently, the gap is approximately 0.9 points below its pre-pandemic value in November 2019 (13.9 per cent), 4.4 points beneath the level reported a decade ago in May 2013 (17.4 per cent), and about 2.0 points lower than the pre-Mining boom low in 2005.
While these advancements signal positive strides in regard to wage equality, they also beckon us to contemplate how this evolving landscape should reshape our approach to financial planning and risk management, particularly in the realm of income protection coverage.
Refining the settings
What about insurance? Historically, studies have indicated a disparity in the levels of income protection insurance between males and females. This imbalance can be attributed to a multitude of factors, including wage differentials and societal roles. However, it’s important to acknowledge that females are entering the professions in large numbers, where their most valuable asset is their ability to earn an income. According to recent ABS data, there has been a notable jump of 14.6% in female engineers and a 15.4% rise in female surgeons from May 2022 to May 2023. At PPS Mutual, exclusively composed of professionals, claims for Income Protection are split 50/50 between males and females, highlighting this evolving trend.
Yet, recent momentum towards narrowing the gender wage gap raises some intriguing questions. With female earnings more closely aligning with those of men, a critical query emerges: is there potential to trigger corresponding adjustments in financial protection measures? The obvious place is of course income protection coverage. Advisers play a key role in helping their clients to adjust the required settings across their holistic financial well-being and protection planning.
Protecting clients from an own goal
As female professionals embrace the promise of some improvement towards financial parity, risk advisers find themselves in a pivotal role – that of helping their clients avoid a potential “own goal” in the realm of financial security. Undeniably, the journey towards gender parity in income is paralleled by the need for parity in financial protection.
A clear opportunity for advisers is to encourage the shift in the way financial protection is perceived and pursued. Risk assessment and tailored solutions are some of the ways in which the coverage gap can be bridged.
Closer to parity: but still a fair way to go
As the historic achievement of the Matildas punctuates the journey towards gender equity, let us hope that the trajectory of financial planning and risk management mirrors this victory.
With the landscape evolving quicker, signs of financial parity between genders can hopefully serve as a guiding light. Just as the Matildas have become an emblem of determination and progress, so too can financial advice make the pivot to support a better future with each individual scoring their own personal goals on an equal footing.
Michael Pillemer, CEO at PPS Mutual
Fact: in Australia, there is no gap in pay because of gender. Pay is usually based on value and is linked to supply & demand.
If in doubt, why did Alyssa Healy, Australian wicket-keeper, earn $1.25m for a few weeks’ work in the 2023 Indian Premier League with packed stadia, as opposed to say, the goalkeeper in the Australian men’s hockey team, who got paid a bag of peanuts for playing in the 2023 FIH Pro-league tournament, with empty stadia?
What were the total worldwide viewers for the men’s world cup Vs women’s? Curious to know.
Another misleading article about pay differences in sport.
You get paid what you bring in, unfortunately not as many people watch women’s sport compared to men’s sport. The men’s world cup brought in over a billion dollars, and the women’s world cup over 500 million dollars, so already you have a difference in what will be paid out to players etc.
If you are worth more, you should get paid more regardless of if you are a man or a woman in sport. It is just that more men watch sport and will pay for tickets and merchandise for their teams than women do. If more women bought tickets and went to women’s games, purchased their team’s merchandise, you will see a big change in this.