Think you’ve still got a long way to go before retirement? Not if you manage to put together a nest egg by the time you’re, say, 50. But how should you go about pursuing financial freedom more aggressively? After all, the recent State of Retirement in Singapore survey by Great Eastern found that women typically face “unique” hurdles when it comes to financial planning.
“For one, women are more likely to take prolonged breaks in their careers, whether for maternity leave or to fulfil other domestic responsibilities. The time off can translate to a reduced capacity to fund a nest egg,” explains Teo Xue Ting, a representative from the insurer. She adds that they also tend to spend what they have on their family, especially their children, instead of saving for retirement.
And then there is the gender wage gap and the discrepancies in financial literacy.
“Women not only generally earn less than men, but are also less likely to invest their money. Women are generally more conservative investors and prioritise day-to-day solvency over long-term goals.”
It should also be noted that women tend to have increased life expectancy, which means they are left to grapple with rising healthcare costs and other issues associated with old age for a longer time. This is probably why the survey found that a higher number of women (45 per cent) here rely on family members for their retirement income than men (39 per cent).
Want to better prepare yourself for your retirement? Xue Ting shares four tips.