​Women in New Zealand retire with significantly less savings than men, despite living longer. This financial disparity, known as the ‘retirement wealth gap’, leaves many women vulnerable when they should be enjoying financial security. Why does this gap persist, and more importantly, how can we close it? 

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Several factors contribute to this financial imbalance, including the gender pay gap, career interruptions due to women being more likely to take time off work or work in part-time roles to care for children or elderly relatives. Finally, a lack of financial confidence and literacy, can lead to more conservative investment choices, potentially resulting in lower returns over time. 

Despite these challenges, women often outperform men as investors once they get started. Studies show that women take a long-term approach, trade less frequently, and prioritise diversification, leading to higher and more stable returns. Unlike men, who may be more prone to overconfidence and excessive risk-taking, women tend to conduct thorough research before making investment decisions. 

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Steps in which women can take control of their financial situation and improve their financial security in retirement include:  

Learning about money and investing – there are lots of free resources, workshops, and programmes that can help demystify investing – sorted.co.nz is a great place to start.  

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Don’t feel pressured to find out everything you can before you get going – the power of compound returns means that just getting started with a small amount can have a big effect over time. Be confident with your finances, women often run their household with immense confidence – apply the same self-assurance to your financial situation too. 

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Consulting an Investment Adviser can be a game-changer. A professional can help develop tailored strategies to grow retirement savings and maximise investment potential. 

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Stay engaged with KiwiSaver – as a general rule, contributing at least $1,042.86 between 1 July and 30 June puts you on track to receive the government’s annual contribution of $521.43 – essentially free money. If possible, keep contributing if you take a break from work as even small contributions over time make a difference. 

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Women retiring with less money than men, and typically living longer is a big problem. But the good news is, it doesn’t have to stay that way. By learning about money, making smart choices, and just getting started on their investment journey, women can confidently take control of their financial future. 

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As the famous Chinese proverb goes, “The best time to plant a tree was 20 years ago, the second-best time is now.”