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Financial vulnerability is one of the greatest challenges women face today. Women experience various types of gender bias throughout their working life that result in them saving less for retirement than their male counterparts. And not only are women saving less – if they outlive their spouse or get divorced, they could face being left destitute in retirement and becoming a financial burden on their families or the state.
Cashing out your pension fund every time you change jobs may seem like a quick cash-flow fix in the moment, but in actual fact, it’s self-sabotage. Every time you borrow from the future, you jeopardise your financial wellness beyond retirement.
Recent Statistics South Africa figures reveal that, on average, women outlive men by nearly a decade or 9.3 years. And this means that it is absolutely vital for women, if they haven’t already, to take an active role in managing their finances rather than relying on a spouse or partner, because they will need the skills at some point in their lives, says Citadel Advisory Partner Kerry King.
According to a recent survey, many South Africans are simply not ready for the financial consequences of retirement. While saving for retirement on a regular basis and throughout your career is very important, preserving your funds when changing employers should also be right at the top your list of retirement savings do’s.
If you had to hazard a guess, when do you reckon the COFI Bill will be signed into law?