With more than two million people now working part time, the need for family friendly workplaces is growing in demand from both working mothers and fathers.
With more than two million people now working part time1, the need for family friendly workplaces is growing in demand from both working mothers and fathers.
There are currently 30% of employed fathers making use of family friendly work arrangements to care for their children, this includes working flexible working hours (21%) and working at home (9%)2.
However, employees working in, or looking for, flexible job opportunities usually find they have to decrease their remuneration expectations with their desire to balance work and family commitments.
According to the Australian Council of Trade Unions (ACTU), working part time can narrow a person’s employment options and the greater flexibility means some employees end up in "dead-end" jobs because they can’t get the same flexibility with another position3.
Paul Northey, Navigator’s general manager group marketing and distribution development, says with forward planning there are ways to ensure families don’t miss out financially if parents decide they need to balance work and child rearing.
“Children cost money and often families are forced to give up some earning capacity when they actually need it the most – when they are raising their children,” says Paul.
Traditionally the part time job market has been the domain of working mothers but more and more men are now joining them4. There are currently 15% of men and 47% of women working in part time roles5.
“Financial demands often lead the main breadwinner in the family (traditionally the father) to trade time with their children against a full time salary,” comments Paul.
“This is a high cost to make and wouldn’t be necessary if young affluent couples without children began a savings and investment strategy early in their life together, which could then be accessed when the money was really needed.”
These last few years has seen a dramatic change in the age of couples having children, with many delaying until they are into their thirties. The median age of new fathers has reached 326 while new mothers are 307.
“These years before children are a golden opportunity for couples. Invest your hard earned money in those additional working years and reap the benefits later – enjoy working part time and spending time with your children with the knowledge that your investments from years ago are picking up the financial slack,” says Paul.
A Navigator Personal Investment Plan (PIP) is a flexible investment product which allows a client to invest funds and then access their money when they really need it.
As you can see from the graph below, investing A$20,000 into the Navigator PIP for eight years could potentially make A$14,364. “This would go a long way to helping you spend more time with your kids during their formative years,” says Paul.
This comparison selected Navigator funds at random. As this comparison relates to fees, a constant return of 7% per annum was applied to all funds and any tax impact was ignored. Entry fees were applied at the published full up front option. In reality this may be reduced. A selection of different funds, or switches will result in a different outcome.
“At Navigator we are committed to helping our clients save for whatever their future delivers them, perhaps that is spending time with their children or buying a larger house for the brood.”
A financial adviser can assist in creating a robust financial strategy which caters for all your lifestyle needs.
-ends-
For further information, please contact:
Simon Morgan, Group General Manager Public Affairs
(03) 9829 8892
0407 966 632
1 ACTU, Part time and casual work, 2004, Adelaide.
2 Australian Bureau of Statistics, Father’s Day 2003: ABS facts for features, September 2003, Canberra.
3 ACTU, Part time and casual work, 2004, Adelaide
4 ACTU, Part time and casual work, 2004, Adelaide.
5 Hon Kevin Andrews MP, Balancing family and work – An address to the Pursuing Opportunity and Prosperity Conference, University of Melbourne, November 2003, Melbourne.
6 Australian Bureau of Statistics, Father’s Day 2003: ABS facts for features, September 2003, Canberra.
7 Australian Bureau of Statistics, National Families Week and Mother’s Day 2003: ABS facts and figures, September 2003, Canberra.
Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners, the Australian funds management arm of Aviva plc, is a sister company. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world’s seventh largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$66.08 billion, and more than A$472 billion of assets under management (as at 1 January 2004). The group has more than 59,000 employees and 25 million customers worldwide.
- The information in this document reflects Navigator Australia Limited's ('Navigator’) understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information is not, nor is it intended to be, comprehensive or a substitute for professional advice on specific circumstances. The securities advice or information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of the advice above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the advice is appropriate in the light of their particular investment needs, objectives and financial circumstances.
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