Many women face bleak retirement - study

Women from around the world face similar issues when considering retirement, the following story is from South African and was published May 15 here

Cape Town - South African women show a shocking lack of awareness and foresight when it comes to retirement planning, which could condemn many to a poverty-stricken retirement.

So says Brett Taylor, area head of the deVere Group, South Africa. Taylor was responding to the results of an online survey which was conducted via Fin24 in April 2013 on behalf of the deVere Group.

The study showed that women represent less than 25% of the retirement planning sector in South Africa, with over half of those surveyed relying on once-yearly commnication with their financial adviser and nearly a quarter “never” communicating with them.

Women in the 51-60 age bracket, many of whom are on the cusp of retiring, paint an even gloomier picture with only 12% currently seeking any kind of retirement planning advice.

Bleakest of all is the regional perspective for Limpopo and the Free State; not a single woman from these provinces completed the survey, which had as a prerequisite some form of existing retirement planning.

Among respondents, 60% and 28% were from the Western Cape and Gauteng, respectively.

The under-40s are better prepared, representing 64% of those who completed the survey. Of all the women surveyed, only 16% were “very happy” with the earnings results from their investments.

Says Taylor: "It is important for women to take control of their financial future and to become educated about the retirement planning alternatives available.

"They are risking hardship in the future by ignoring financial planning today - this despite their dissatisfaction with the returns on their existing investments for their retirement."

Far too many women expect the state to provide, or are simply not informed about retirement incomes.

He says: “Some of the respondents have started planning and they are the ones who are more likely to benefit from a wealthy retirement.... 

“Over the last few years the world has changed and with an ageing population and declining state and occupational pensions, it’s vital that people take responsibility for securing their own financial freedom," says Taylor.

He urges people to be more proactive, especially in today's economically turbulent times and unstable markets. “With the markets behaving in such a volatile manner in recent years, it is even more important that you review your pension provisions on a regular basis."