There is huge gender retirement gap, where women are significantly worse off than men when it comes to their retirement savings. Picture: Freepik
Studies show that there is a gender pay gap in both South Africa and internationally that sees women being paid up to 35% less than their male counterparts.
According to Craigh Chidrawi, executive head of retirement and COO at NMG Benefits, globally there is also huge gender retirement gap, where women are significantly worse off than men when it comes to their retirement savings.
Chidrawi shares 6 tips to help women improve their retirement outcomes:
Plan for the long term
Building your retirement fund is a lifelong task. Therefore, it is important that you start saving for retirement early so your money has more time to grow.
Chidrawi said that even though people are feeling the financial pressure, it’s critical that they make retirement saving and planning an integral part of their monthly budget.
Increase your retirement fund contributions
One of the major reasons people don’t retire with enough money is due to the simple fact that they don’t save enough.
Chidrawi said: “The more money you are able to put away while you are earning, the bigger the nest egg you will have to provide financial security in your retirement years. Work through your budget carefully, and see where you can make extra savings to put into your retirement fund.”
Review your expenses
Take the time to assess your expenses and identify areas where you can cut back on your spending and instead put that money towards your retirement savings.
Get involved in the family finances
Women should take charge of their finances rather than letting their spouses or partners be in control of money matters.
“Women must get more involved in all aspects of their family’s financial planning. They must know how much money is being spent and saved and the current state of their retirement funds,” Chidrawi said.
Speak to a financial planner
A financial planner can help women:
– review their financial needs and goals;
– make the right investments to ensure they have enough money for their retirement;
– make sure that their resources will be handled in a safe and predictable way.
Beat the tax burden
According to Chidrawi, one of the biggest benefits of retirement planning is to structure retirement funds in a tax-efficient manner.
“The more control you have over your income sources in retirement, the more likely you are to be able to reduce your tax burden. Because future tax regulations are difficult to predict, diversifying your income sources in retirement could save you a lot of money in the long term,” Chidrawi said.
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