Women And Retirement

Extract from the website, The Women Summit 2009, some salient points:-

• In 2006, Malaysian women accounted for 49.1% (13.08 million) of the total population, of this
• 63.3% (8.28 million) were between 15 to 64 year age group .Female labour force makes up 45.8% with 3.8 million in the labour market, which is 36% of the total labour force.
• A recent survey (not sure how recent lah...) by the EPF revealed that 72% of EPF Contributors spend their entire EPF saving within THREE (3) years of retirement.
• The year 2007 data from EPF on the saving capacity of women age 54 (just before retirement, leaving the workforce at age 55) showed there were 15,944 women registered with the EPF with a total saving of RM1,354,532,480. That is.... an average of RM84,955.62 per person. Enough for retirement? (Average also implies that most of the 15,944 women have much less than RM84,955)

Some inportant steps for women to take control of their finances:

• Take stock of your financial health today. Review your financial strengths and weaknesses. Understand your challenges and obstacles - is it last minute shopping or lack of discipline in sticking to your savings plan?
• Set clear goals. Think how you can make your money work for you. Make 2008 the year when you will succeed in achieving your financial goals!
• Prepare for emergencies. Build a large enough nest egg to deal with emergencies. No matter how much you earn, you must put some aside for savings.
• Develop a budget and stick to it. Identify how you spend your cash. This is the best way to minimise expenditure on items you don’t need. Use any extra funds to pay off debts or save it.
• Try to improve your Fin-Q. Equip yourself with the necessary information - read books, attend investment seminars, visit websites etc. Be proactive, take control and learn more about options to improve your financial health. By doing so, you will be in a better position to choose the right plan for yourself. Armed with information and confidence, you will have a better understanding of the equity markets, investments, property investments and other avenues.
• Understand the fundamentals of developing a proper investment portfolio. Do not be afraid of technical information and jargon. When in doubt, engage a professional financial advisor to provide advice and assistance.
• Start your retirement planning today. Younger women should start by learning as much as they can to ensure they have enough savings to sustain themselves during retirement.

It is never too late to start!

Seeing a financial advisor is also critical. Starting early, developing effective habits, then taking ongoing steps for retirement is the best way to have a smooth transition from working life to retirement and ensuring you can maintain your current lifestyle.

Source: www.thewomenssummit.org