The Most Valuable Advice Is To Seek Advice Itself

As both a mother and a daughter, I have faced many challenges and experiences that have taught me the true value of giving and receiving advice about all kinds of questions and choices that we face in life. It’s something that we as people inherently seek when we feel conflicted or are looking for answers to questions that we’re unsure about. Whether we find ourselves asking questions around the dinner table with our families, over coffee with friends, or across a boardroom table with colleagues, that simple task of asking for help and advice is more often than not the catalyst for growth and change; and it is powerful. 

After a year of uncertainty, it is only natural that many of us are left wondering what both the short-term and long-term impact of the pandemic will be. At Rest, we spoke to a number of our members about their experiences during the pandemic and found that for our female members in particular, it was a tumultuous period, but also one of personal growth. Many lost their jobs, moved to part-time or insecure working conditions, or took on more responsibilities around the home, and many faced these challenges quietly. A study conducted by the SDA (2020), which looked at the Gendered Impact of COVID-19, showed that at the start of the pandemic, industries such as retail, which are female-dominated in employment, were hit harder. In April last year, 80,000 more women than men lost their jobs. As a result, a number of women found themselves in a position where they had to rely on personal savings and their superannuation to survive through the pandemic and are now left with the task of funding their COVID recovery to replenish their retirement balance.

I read back over our member experiences, there was one story that really resonated with me. Rest member, Michaela*, shared with us her experience of being a 42-year-old single mother of two school-age kids in regional NSW, who saw her casual income drop by almost half as a result of the pandemic. This left her with no choice but to rely on her savings in the early days of the restrictions to keep her family afloat. With no end in sight, and her savings dwindling, Michaela had to depend on the Early Release Scheme to top up her finances, accessing almost a third of her super balance. This was not a decision taken lightly, and the withdrawal would see her having to work an additional nine years to retire with the same pre-pandemic amount. Fortunately, Michaela has taken the first steps in proactively rebuilding her super balance. Speaking with Rest, Michaela sought advice on the best way to regrow her balance and has already made plans with her employer to salary sacrifice over the next four years in order to rebuild her retirement fund.

With the number of female members using our digital financial advice nearly quadrupling during the 2019/2020 Financial Year. We hope to see that number continue to grow.

It’s alarming to think that her experience was shared by so many others. However, as is the case with Michaela, for many women this has been an opportunity to re-evaluate their existing financial situation and seek advice on what steps to take next. For some, this could be proactively rebuilding their finances once the pandemic is over. For others, it could also be considering if their super is invested in the right option for them, or checking that their insurance cover meets their needs. We were proud to see that for a large number of our female members, this has already been the case, with the number of female members using our digital financial advice nearly quadrupling during the 2019/2020 Financial Year. We hope to see that number continue to grow.

When we look forward to a post-pandemic future, it is important for our affected members to think about how to recover their finances in both the short and long term so they can reach their personal-best retirement. At Rest, we see the value of financial advice for our members, and offer tools and services including Digital Advice Tools, Super Health Check and the Online Learning Centre, at no additional cost, to help more of our members achieve their personal best retirement outcomes. For those members who are a little unsure, the first step is always to ask for advice. By using the tools at their disposal, and proactively taking an interest in their retirement future, positive changes will follow. 

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*Name has been changed for privacy.

Rest Advice is provided by Link Advice Pty Ltd ABN 36 105 811 836, AFSL 258145 (Link Advice). Rest Advisers are staff members of Rest and provide advice as authorised representatives of Link Advice. Rest Online Advice is provided by Link Advice. 

Product issued by Retail Employees Superannuation Pty Limited. Consider if it is appropriate for you and read the PDS available at rest.com.au before deciding to join or stay.