Research by the World Health Organisation suggests that women could live to up to eight years longer than their male counterparts. Although greater longevity than a man may seem like a good thing, it means that a woman’s investment or retirement funds will have to last longer.
Life happens and with it events such as divorce or death. Women therefore need to plan ahead for these circumstances, by having a structured financial plan and savings to cushion them in these uncomfortable times. But how do women go about this? * Make saving a priority. Have a positive attitude towards saving. When the financial concerns of the family become the primary concern, women tend to save less to meet these demands and are therefore poorly prepared for retirement. Take an active role in your own financial planning. Do not leave this up to your spouse or partner.
* Have an open discussion with your spouse. As women, we have a right to know what is going on with the family and household finances. Participate as a team and have healthy discussions about future savings and expenses. A spouse may have to reshuffle their personal finances to be able to support the whole family if there is going to be a break in service to raise children. It is vital that one does not cash in their retirement funds to be able to support them through this time.