Planning for retirement is a crucial step towards ensuring a secure and comfortable future for all New Zealanders. However, for women, this journey can be particularly challenging due to several unique factors that contribute to a significant gender wealth gap. 

Understanding these challenges and taking proactive steps can make all the difference in achieving financial security in retirement. Here, we delve into why women need to plan ahead for retirement and offer practical advice on how to bridge the gap.

Understanding the Gender Retirement Gap

The gender wealth gap refers to the disparity in retirement savings and income between men and women. This gap is influenced by a combination of factors, including differences in lifetime earnings, career interruptions, and longevity. According to a research from Te Ara Ahunga Ora Retirement Commission, these are some of the key contributors:

1. Earnings Disparity

On average, women in New Zealand earn 9.4% less than men. This pay gap results in lower savings and KiwiSaver balances over a lifetime.

2. Career Interruptions

Women are more likely to take career breaks to care for children or elderly family members. These interruptions can significantly impact their ability to save consistently for retirement.

3. Part-time Work

Women often work part-time or in lower-paying jobs, further reducing their retirement savings potential.

4. Longevity

Women typically live longer than men, meaning their retirement savings need to last longer, increasing the financial strain during retirement years.

Practical Solutions to Bridge the Gender Retirement Gap

Start Early

The earlier you start saving for retirement, the more time your money has to grow. Take advantage of compound interest by contributing regularly to your KiwiSaver and other retirement accounts.

Maximise Kiwisaver Contributions

Ensure you are making the most of your KiwiSaver contributions, including employer contributions and government incentives. Consider increasing your contribution rate if possible.

Invest Wisely

Diversify your investments to balance risk and growth. Consider working with a financial advisor to create an investment strategy that aligns with your retirement goals.

Plan for Longevity

Account for a longer retirement period in your financial planning. This includes budgeting for healthcare and long-term care costs.

Seek Professional Advice

A financial advisor can provide personalised guidance and help you navigate the complexities of retirement planning. They can also assist in optimising your savings and investment strategies.

How Athena Wealth Can Help

At Athena Wealth, we understand the unique challenges that women face in planning for retirement. Our mission is to empower women with the knowledge and tools they need to achieve financial independence and security. Here’s how we can help:

Personalised Financial Planning

We offer tailored financial planning services that consider your individual circumstances, goals for different stages of life, career trajectory, and retirement goals.

Investment Strategies:

We can help you develop a diversified investment portfolio that balances risk and growth to ensure your retirement savings grow steadily.

Retirement Readiness Assessments

We provide comprehensive assessments to help you understand your current financial status and what steps you need to take to reach your retirement goals.

Educational Resources

Access our workshops, webinars, and resources designed to educate and empower you on your financial journey.

Planning for retirement can feel daunting, especially when faced with the unique challenges that women often encounter. But by understanding these challenges and taking proactive steps, you can secure a comfortable and confident future. At Athena Wealth, we are here to support you every step of the way.

Reach out to us today to start planning for a future where you feel secure and confident about your finances. Let’s work together to turn your concerns into a well-planned path to financial independence and security .

Disclaimer: The advice provided in this blog post is general in nature and does not take into account your personal objectives, financial situation, or needs. Please consider whether the information is appropriate to your circumstances, and reach out for personalised advice.