Why mid-life investing can make all the difference (especially for women)

Forty. It’s traditionally an age to take stock, recalibrate and, according to many women currently enjoying or fondly reflecting on this decade, time to start caring less about what others think. 

Why? Because you’ll want to save those cares for yourself, as you set yourself up for the second half of your career, and life in retirement. 

Which is exactly what we’re trying to do for our friend, Anna. 

You’ll recall that Anna is a fictional woman, now entering mid-life. But, you see, she isn’t in control (which perhaps we can all relate to?). Anna’s decisions, at all major life junctions, are being made collectively by FW’s community, through a series of polls on social media.  

And what happens to Anna in her 40s could drastically impact her financial fate. 

Age 40-49 is the decade where we see the average superannuation gap between Australian women and men widen significantly to 38.9%. While there are structural gendered and economy-wide reasons for this, it doesn’t mean Anna can’t be proactive and improve her individual circumstances.

At 40, is it too late for Anna to build wealth outside of superannuation, by buying shares? 

According to Money School founder Lacey Filipich, absolutely not. 

“Whenever someone in that age bracket says they think they’re too late, I point them to the story of my mother, Fran,” says Lacey. 

Lacey’s mum Fran was a single parent with little cash to spare while raising two daughters. Fran didn’t make her first investment until age 49, when she purchased a small parcel of shares. 

“Between 49 and 63, mum saved and invested her way to financial independence on a moderate wage, becoming a self-funded retiree two years ahead of her eligible pension age,” says Lacey.  

“You have plenty of time to learn how to invest – and even to make mistakes as you build your skills and confidence. You just have to get started. And you can start small, with a few hundred dollars.”

So, shares. Tick. But what else can Anna do?

She can protect herself by eyeing every move her money makes. All the more so, if she’s  managing it with a partner. 

“In the abbreviated words of Amanda Thomas of Thomas Gatter Law: combining finances without a binding financial agreement (BFA) is like sex without a condom. It’s risky,” says Lacey. 

“A BFA is worth considering in all relationships where you’d be viewed as de facto or married. You can enact one at any time – it doesn’t have to be at the start of the relationship.”  

And it will certainly come in handy, should Anna choose to end one. 

In 2023, the median age for divorce among Australian women was 44.1 years. Research also tells us that we’re more likely to suffer, economically speaking, from divorce than men, but this needn’t be the case for Anna.  

“Divorce in your early 40s can feel like a major financial setback,” says Lacey. “The good news is, you still have a couple of decades of solid earning potential ahead of you, so it need not damn you to a life of penury. It might even turn out to be better for your financial health, in the long run.” 

What does Anna’s life look like, as she prepares to celebrate her big five-oh? 

According to our votes, Anna has kept debt down by saving for home renovations and holidaying locally. She’s also studying on the side of her day job and slowly establishing her own interior design consultancy business. While working on her marriage through counselling, she’s sending her kids to public school and investing in a diversified index fund. Her late 40s see her moving to a new city with her family – and giving back to causes she believes in.