There are more women in the workforce now than at any other time in history and they are earning higher wages than in the past. However, this doesn’t necessarily translate into better retirement planning or a bigger corpus for them. This is because more often than not women leave work temporarily or work part-time to indulge in care-giving. This means lesser money to save and, hence, a lower corpus.
Besides, there are women who don’t bother about their finances, irrespective of whether they are employed or not. They leave it all to their spouses without a care about their sustenance in the sunset years. Given the simple fact that women tend to live longer than men, it is important for a woman to be aware, if not actively involved, in planning her retirement.
“Mostly women go through the cycle of being financially protected before they get married or take up a job,” says Mumbaibased financial planner Zankhana Shah. This makes them complacent about investing and affects them adversely later in life. Though retirement planning is the same for men and women, planners tend to deal differently with women. “They have different financial needs compared with men. So while she will spend on travel, a man is likely to think of spending on electronic durables even after retirement,” says Shah.
 She didn’t bother about having a plan till she saw that her parents had to curtail their expenses and adopt a frugal lifestyle after retirement. “I intend to adopt a child, but till that happens, my retirement plans will remain a priority.” |
 Even if she is married, a woman must invest separately as her risk profile differs from a man’s. |
Myth: My husband will take care of my finances. I don’t need to plan for my future. Fact: While it’s all right for one person to take the financial decisions in case of joint accounts and plans, you should be aware of the facts and developments. If the key decision-maker is not around for whatever reason—divorce, death—you will need to take on the responsibilty and it will help if you are in the know. |
“Women tend to lead frugal lives and curtail expenditure. This often makes them think about living poor and dying rich,” says Chennai-based financial planner Dr. D. Sundararajan. “Whether they are single, working or retired, women have a better sense than men about what to do in retirement. Moreover, they tend to be more adept at managing short-term transactions, such as balancing the inflows and outflows linked to running a household. But it doesn’t mean women should stay out of long-term planning,” he adds.
Madhuri Moghe, a 39-year-old housewife from Bhopal, doesn’t. Though her husband is the breadwinner, Moghe is involved in all financial matters. She not only manages the household budget, but is also the driver when it comes to investing. “I invest in mutual funds, especially tax-savers, as they serve the dual purpose of saving tax and wealth creation,” she says. The Moghes have also bought a house, where they plan to retire 20 years from now.
“Saving is extremely important for single women too,” says Shah. Delhi-based Shagun Mehrotra, 38, agrees. She is single and passionate about her work, so she didn’t bother about retirement till she saw her parents. “I have become extremely sensitive to the issues of old age, considering how retirement brings changes in people’s lives and the little support that they get to deal with these changes,” she says.
Mehrotra has invested in a house, though she lives on rent, and she has also taken a few long-term products that will allow her to save as well get tax benefits and infuse savings thrift. “Saving for specific financial goals started only recently and I realise that it helps to focus on what the money will do. I have to be self-reliant in an emergency or in my sunset years,” says the woman who wants to adopt a child in the near future.
“Even when married, have a joint retirement corpus plan, but invest individually as your risk profiles will be different,” advises Shah. If you are working, you should have your own retirement plan just like you have an individual insurance.
However, most working women say that finance is the last thing on their minds after a gruelling day of juggling work and domestic chores. It might be one reason why financial plans overlook women-specific needs. But planning for the future isn’t too complicated. If you spend a little time early on in life managing your money and planning your retirement, you can be rid of the worry lines that can scar your face—and your life.
ARE YOU ON TRACK? Whether you are a single woman or married, working or unemployed, here are the essentials that you must take care of if you want to lead a secure post-retirement life: Insurance Investment Real Estate Gold |
