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.
Sometimes women have to take a break from work to raise children or care for ageing parents, which means a break in income. It also means that women will have additional years to take care of their health, but healthcare is expensive.
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?
* Start saving as early as possible. It is important to put money away from your first pay cheque, as the sooner you start, the better. Save more when you are able, particularly when you are young and have less responsibilities. The power of compounding growth over time is too big to ignore. If you have not started saving, speak to a financial adviser to put a savings plan in place as soon as possible.