Men are often said to have more familiarity with financial matters, but there is more than a 90% chance that at some point the woman will be the sole financial decision-maker in the household.
Why is this the case?
Women live longer. Women born today are expected to outlive men by almost four years (Statistics New Zealand, 2015). This means they need to save more than men because it is likely they will have more years of retirement to fund. Women represent just over half (51.3%) of the total New Zealand population. However, they represent 54.1% of the overall population above the age of 65, and 64.3% of the population above the age of 85 (Statistics New Zealand, 2014). Therefore, many women will need even more help to handle those extra years, given their prospects for greater longevity.
Women tend to be the major caregivers for elder parents. Caregiving and managing parental assets will affect both men and women, but will probably be more relevant for a woman than a man (Department of Labour, 2011).
Women are more likely to live alone in retirement. Issues such as household budgeting, health care, financial planning, legacy issues and investment management will be increasingly taken on by women.
Women will take an active role in family finances in the future. Increasingly, more women control the family finances. Our advice has always been that the woman in the relationship should be prepared to take over family finances at a moment’s notice.
The content from this blogpost is from our book ‘So You Think You Are Ready To Retire’ a self-guide book to prepare you for retirement, it can be purchased here:
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