Last Updated on 8, June 2016
The latest survey conducted by HSBC Future of Retirement (Healthy New Beginnings) Singapore Report reported that:
- 32% of women say that their actual financial situation got worst after retirement compared to retired men (26%).
- 34% women say that their actual overall health got worst after retirement compared to retired men (18%).
- A higher proportion of working women (60%) do not know how much they will spend on healthcare when they retire as compared to working men (52%).
Among those (men + women) who are still working but unable to retire in the next 5 years, it was found that the following were the main obstacles preventing them from retiring:
- Haven’t saved enough (68%).
- Still supporting dependents (47%)
- Still have a lot of debt (26%).
Strangely, a higher proportion of working men (92%) say they face at least one of these barriers compared to 89% of women.
Comments:
What the statistics is saying is that women are worst off financially. Not only are women more ignorant on how much they will have to spent on healthcare when they retire, but they are actually financially worst off after retirement as compared to men.
The fact that a higher proportion of working men reported to face obstacles preventing them from retirement could imply one thing: men tends to get worried more easily. But worrying is good because that can be a catalyst to encourage them to embark on a proper financial plan. On the other hand, if a person is not worried about retirement, it is unlikely they will seek proper financial advice.
Another area that does not show up in the statistics is housewives. Housewives do not have any income. They should be very worried about retirement. They do not have the means to invest and to have a financial plan. But what they can do is to ensure that their husbands embark on a proper financial plan.
The following are some practical steps you can take:
Step 1: Start saving early for retirement.
It is never too early to save. When I was young, my parents encouraged me to save when I got my first red packet. But these days, people do not even know what is the meaning of savings. When they walk into a bank, they thought that buying an endowment plan is called saving.
Step 2: Plan for longer retirement
Not only is life expectancy increasing, but it was reported in the same survey that 31% of the retirees say that their relationship with their spouse improved after retirement. So this means, you will want to enjoy your retirement years with your spouse and this can only be done if you have the means to do so.
Step 3: Consider how your healthcare needs may change in retirement
Most people are unable to predict their how much they need to spent on healthcare needs when they retire. This is especially so for women. This means the importance of getting proper insurance coverage. Getting the necessary coverage has to be obtained when young and not old. When you are old, you may not be insurable.
Step 4: Reduce your debts
Most Singaporeans are heavily in debt. This is normally due to their addiction in buying properties. But even first time home owners tend to overstretch themselves in buying a property that is not affordable.
Step 5: Have a financial plan before doing anything else
I have lost count of the number of times people approaching me for financial planning when they have already decided on what to do. For instance, I always tell people why they even bother to call me up for financial planning when they have already sunk 99% of their income and money into buying an unaffordable property? There is no way they can utilized the remaining 1% for retirement planning, buying insurance and even to have kids. But the reason why people still want to engage me for financial planning despite only having 1% of their income available is because they just want to get assurance from me that what they did with their 99% of income was the correct decision. Of course, I will tell them the hard truth: their decision for that 99% is a foolish one.
Step 6: Urgency for women to seek financial advice
If you are a woman, it is urgent that you have a proper financial plan. The statistics is against you. What is NOT financial planning?
- Buying insurance policies is NOT considered having a financial plan. In fact, buying too many insurance policies can ruin you financially.
- Buying an investment-linked policy is NOT considered having a financial plan. The investment-linked policy could ruin your financial plan (if you had one to begin with). See Why is an ILP considered inferior/ a time bomb?
- Attending seminars and courses on investments is NOT financial planning. Actually, majority of the courses and seminars are conducted by unqualified, inexperience and unlicensed individuals. There is currently no regulation on these courses. I have written to the press on this issue but so far MAS refused to regulate them. See my letter here: Regulate investment seminars.
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The survey population are 45++. For this generation, there is still a significant wage gap between male & female workers throughout their working lives, especially for those non-degree holders. Hence females tend to have less income for retirement savings.
Although anecdotally for that generation, husbands are still expected to foot more or even most of the family finances e.g. mortgage, healthcare, childcare, groceries. Husbands provide the money, whiles wives execute the home making, food preparation, child rearing, etc. It’s only in the 2000s that expected financial outlays between husbands & wives become more equal, especially in mortgage payments.
Which brings to the higher percentage of these 45++ y.o. men having more financial commitments than female counterparts in being unable to retire in 5 yrs time.
From personal observation of relatives, colleagues, & friends in the 45+ age group, females tend to experience more physical discomfort (possibly due to menopausal changes) and tend to act on these — seeking medical attention etc. As these hormonal changes & impacts can ebb & tide over 15+ years, many women have the feeling that their stuck with bad health & never-ending medical requirements. For guys, they tend to ignore minor aches & pains and tend to self-medicate, only going to the doctor when they really cannot take it. Especially during retirement when there is no point taking MC to siam from work.
It’s really true that women tend to fall sick more, or at least go see doctors more often. But for guys, when the big health bomb strikes, it tends to be the big one e.g. heart attack, stroke, physical collapse, etc.
Besides doing proper financial planning & getting appropriate health / medical insurance, Sinkies need to look after their health especially in their 30s. The problem is that most Sinkies eat too much and eat too much crap. By the time they hit late-30s or 40s, their body systems are pretty much shitz. But many of the effects & symptoms don’t show until 50s or 60s.
When we have health, we have many dreams and goals. When we don’t have health, we can only have 1 dream.
Why these women’s financial situation got worse after retirement?
If you go around the malls, mrts or anywhere where the financial predators are present and you can understand why these feline folks can’t retire. Watch the so called financial CONsultants work; they would only target and pounce on their chosen victims and their CHOSEN victims are women and their easiest preys are the middle aged weaker sex.
(don’t trust my words; go to bedok mall where there are at least 2 companies doing roadshow and you can see the kind of victims these agents would target)
And what are the products used to entice them?
Of course….rotten endowment products with magical word ‘guaranteed” and which pay out cash after a short payment term and disguised as retirement products.
Sold to them as retirement products but their retirement goal is NEVER considered in the presentation. Can a gain of 10% in absolute return after 5 years meet any goals? I can only think of the goal that can be met is the insurance agents’ commission goal.
So you see, is it a surprise that women cannot retire? Not surprised, lah. So long they trust the insurance agents they cannot and will never retire with enough funds .Bad luck to have met these charlatans, hor!!
Is MAS doing anything about the product peddling that is still so rampant at roadshows?
Did MAS send any mystery shoppers to check on them? I wonder!!! If there was, then I can conclude that the mystery shopping exercise is a wayang intended to pull the cotton wool over the public’s eyes because the insurance agents are still very busy using the same modus operandi to fleece the public especially the gullible, stupid, trusting women especially the middle aged women.
Nothing can be done if these women continue to trust these sales people and with the regulator’s head still buried in the mud.
Have you guys checked my observation that women are the most targeted victims of insurance agents at roadshows and which explains why they are worse off during retirement?
You can guess why these conmen don’t go for men . It is because they are more resistant and the agents know they can’t mess with them.