FNB makes a call for Women to take charge of their own finances
First National Bank has sounded a call, urging South African women to take charge of their financial education and financial decisions.
The call by FNB, which coincides with Women’s Month in South Africa, is designed to ensure that women take a hands-on approach to financial matters and their investment education. This will ensure sensible decisions that will translate to sound financial security in future.
It is important for women not to be financially dependent on the eternal presence of their partners and husbands to prevent possible financial ruin when they leave or pass on.
“Global research shows that women outlive men which forces them to manage their household finances alone. Because many women tend to depend on their spouses or partners to manage the money, they make costly financial mistakes when the spouses or partners are no longer around,” says Lezanne Human, CEO for Investment Products at FNB.
A report titled "Society at a Glance" show that on average across the Organisation for Economic Co-operation and Development (OECD), men live between 14 and 24 years after retirement and women between 21 and 28 years (based on their life expectancy from actual date of retirement).
“This raises the need for women to take financial management and investment education seriously so as not to endanger their financial well-being later in life,” Human cautioned.
Local research by Old Mutual, released in 2010 and Businesswomen’s Association (2007) paints a gloomy picture on local women and their financial independence:
· The majority of women older than 55 depend on their husbands for retirement planning and most were left destitute after the death of their partners.
· Poverty affects more women with 80% of them being in the LSM 4 category or below, 44% are single mothers, 32% divorced and 83% of them were solely responsible for their children.
· 87% of widowed or divorced women older than 60 depended on their children or on welfare.
· Only 6% of women said that they make additional contributions to their retirement funds over and above their regular monthly amounts, compared to 13% of men.
· 59% of women admitted to taking all or some of their company retirement funds out as cash when leaving their jobs, compared to 49% of men.
· South African women made up 41% of the working population and outlived men by seven years.
Human says training women to take an active role in their own finances should start with girls at home and at school.
“A concerted effort to encourage and educate women to play a leading role in financial management at a young age will ensure they achieve and maintain their financial security throughout life,” concludes Human.
