A recent report by ASB Bank has indicated that despite saving more than men, women have 12 percent less funds come retirement. The report claims this is because women are more likely to save more into their bank savings accounts instead of investing in an appropriate investment fund like KiwiSaver.
AdviceFirst adviser Sarah Ashby says that a person’s risk tolerance is a result of a lot of factors such as investment experience, understanding of investments and financial markets and individual goals and timeframes.
“Women don’t necessarily have a lower risk appetite than men, however, some women may go with a low-risk fund as they may not feel confident making financial decisions, or they may not know that seeking financial advice is an option available to them.”
Sarah says meeting with a financial adviser and having conversations about their investment goals can help women improve their retirement savings.
“A financial adviser can help their clients understand what their wants and needs will be in retirement, putting a dollar figure on that lifestyle and then creating a plan to achieve that goal,” says Sarah.
“Knowledge is power, and it is more likely that people will achieve their goals when they have a plan, rather than leaving it to chance. I would hope to see more women seek advice and take control of their own financial future.”
If you would like a review of your retirement savings, you can contact an AdviceFirst adviser on 0800 438 238 or email firstname.lastname@example.org.