There are some fundamental differences between men and women that can impact on retirement savings. For example, on average, women live seven years longer than men, which means that they are more likely to outlive their retirement savings. Women also tend to spend fewer years in the workforce and experience more career interruptions due to factors like maternity leave and being primary caregivers.
While it might seem daunting to navigate these realities, this Women’s Month, Head of Group Insurance at Momentum, Sandy Govender offers four tips on how women can plan for the future in light of these challenges.
Retire when you are best positioned to
Sometimes women retire when their husbands do, cutting short their period of savings which means that they start drawing down on their capital earlier than they should.
“Remember, the longer you work, the more likely you are to enjoy a comfortable retirement. Women might face more speed bumps than men on the road to retirement, but it’s nothing that we cannot take in our stride!” concludes Sandy. “All it takes is a long-term perspective coupled with some smart thinking, and you are well on your way to a fulfilled retirement.”