Women and Retirement: How a personal pension plan could save your life

17 Aug 2020

According to Aegon’s retirement readiness survey 2019, only 26% of women feel confident that they will be able to retire comfortably, compared to 48% of men.

Reasons for this retirement insecurity are:
• the gender pay gap, where women earn less than men and thus have less savings for retirement
• their working years are less than men because they often take time off to raise children and care for aging family members, thus making less retirement contributions
• many women work part time to accommodate their carer responsibilities and don’t have access to employee pensions
• women tend to sacrifice more on caregiving than men
• many women leave long term financial matters to their spouses or rely on their husband’s pension to see them through retirement
• many women are single or divorced parents and one income families, who often support millennial children who can’t find work
• women who are single parents earn less than men and battle to save for retirement

‘The gender pay gap and caregiving expenses are cutting into many women’s ability to save for retirement.’ – nextavenue.org

Surprisingly, dual income families are often worse off at retirement as they cannot maintain the same lifestyle. They have more disposable income and spend it on luxuries instead of saving for retirement. They have a false sense of security because they don’t have to struggle financially prior to retirement.

With so many obstacles to overcome, how can women change their retirement planning circumstances? 

It starts with a private pension plan. 

Employee pensions schemes and government pensions just don’t cut it anymore. Women need to take retirement matters into their own hands, develop a savings mindset and start with a personal retirement plan. 

Premiums are low and quite affordable and could make up the shortage at retirement. Contributions can continue during part time working and sabbaticals to raise children. 

Speak to your deVere Acuma adviser today to get you on the path to retirement freedom. [email protected]

Tips for women to salvage their retirement plans 

• Plan your finances as if you were single
• Make saving a priority
• Try working longer if you can
• Have regular money conversations with your spouse
• Work with a financial adviser (Forbes.com)

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.