:where would we be without men?
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we be
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Why women need to know more about retirement finances than men
When my father was
age 90, he was going to
the local pub for Sunday lunch. When I asked who he was going
with, he replied, "20 widows and me" (with a cheeky grin). I said,
"What, no men?" And he said, "No, they have all gone."
This is of course no surprise to anybody; we all know that
women live longer than men. Let us assume that a husband
age 68 retires. His wife is 65 so they now both get National
super of $27,000 a year. They have a debt free home and have
saved $300,000 for retirement thus they are looking relatively
comfortable. Assuming a 4% after tax return and 3% inflation,
how long will this money last?
If they are sure they will only live 10 years, they can spend
$31,000 a year.If they are sure they will only live another15 years,
they can spend $23,000 a year. If they are prudent and assume
they will live for 20 years, they can spend $19,000 a year. If one of
them lives for 30 more years, they can only spend $15,500 a year.
Now we all know who is likely to live longer – the woman
– so it is clear that all women need to be well-informed about
retirement and all its financial aspects. There are many, many
issues that you need to be aware of (see box insert on this page).
This can seem a pretty depressing subject, but it need not be.
In fact, you can have a pretty good retirement in NZ if you plan
ahead, and there are many things you can do out and about at low cost.
38 | www.hh e rmagaznn ec c o. n z
www. e rmagaz i i e . . o. n z
• Will the retirement age be raised from 65 to…?
• Should you perhaps work a little longer or keep working
part-time?
• Why you need more investment returns than the bank
will pay you
• How you can get better investment returns without
taking excessive risks?
• Women seem to outlive men by 7 to 10 years
• A woman living alone gets $18,000 a year govt. super
• A woman living alone will have most of the expenses that
a couple would have
• Women seem to outlive men by 7 to 10 years
• If you are going to outlive your man, you need to
understand money today
