Is women retirement planning important? After all, quite a handful of my female clients told me that they will be well taken care of by their husband or children for their retirement.
Can that dependency considered as retirement planning? For this blog post I would like to highlight and share with you 2 important points for your consideration.
Women live longer
Female lives on average 4.8 years longer than their spouse. If there were no proper financial planning done, women who primarily depend on their spouse for retirement will face difficulties in their final years.
Long term financial dependency might also cause women to miss the chance to learn handling money matters. This lack of knowledge will pose an even greater problem when the woman is widowed at older age.
Furthermore, women also get married earlier than man at an average 2.5 years. In another words, women are expected to continue life without their spouse for 7.3 years (4.8 years + 2.5 years)!
Women as a caregiver
Women usually take the role of caregiver at home. Even in today’s modern society, I have female clients who make great career sacrifices so that they can have more time to look after their family and children. To them, family became their top priority after marriage.
This sacrifice usually results in leaving the workforce temporarily, less promotion opportunities or even early retirement. These factors contributed to a reduced income earning ability and lower CPF contribution in their working lifetime.
When should women start retirement planning?
Now! With longer life expectancy, younger marriage age and taking a role as caregiver, it is apparent that you should start to plan your retirement early and save more while active at work. There are financial instruments that can safely and systematically help you accumulate your retirement fund.
Start planning financially and take charge of your own retirement.
