Retire Secure

A Man Is NOT Your Retirement Plan

Some women are lucky: Prince Charming sweeps them off their feet to live prosperously ever after. But what if you’re widowed young? Or split up? Or even if Prince Charming doesn’t turn up? 

‘Gone are the days when women let their partners take charge of all financial decisions. Savvy women should never expect a man to be their financial plan,’ says Madeleine van Wyk, Development Manager of Professional and Graduate Markets at Sanlam Personal Finance.

She has these tips to help women ace their finances this Women’s Month:

Plan for retirement

There’s a 70% chance you’ll outlive your partner. If he passes away, you’ll suddenly be thrust into the lead money role and have to put together all the pieces of his potentially complex financial puzzle. Also, as the surviving partner, you’re responsible for ensuring you’ll have enough to retire on. Work with a financial planner to put together a comprehensive financial plan.

Be aware your 'fairy tale’ may end

Everyone wants to think their marriage will go the distance, but unfortunately divorce statistics say otherwise. Draw up an antenuptial contract to protect whatever you bring into the marriage and ensure a fair split of the assets accumulated during the marital years. Have your own source of income to help you get back on your feet if necessary and ensure you don’t feel trapped if the marriage that isn’t working.

There’s nothing Prince Charming can do that you can’t 

An online survey of 67 000 participants found only 43% of women are confident about their investments compared to 56% of men. Invest in learning about financial matters and partner with a financial planner on your journey.

Sweat your income

More women are earning their own income. What this means is that whether you’re in a relationship or not, you need to make sure your pay cheque works as hard as it can for you. Here’s how:

• Have a strategy in place. Find a financial planner you like and trust. Set attainable short- and long-term goals.
• Be disciplined. Don’t get emotionally involved – treat everything involving money like a business proposal.
• Save as much as you can, starting as early as possible. Compound interest means the earlier you start saving, the higher your interest at the end of the investment term.
• Clear high-interest debt first – some debt incurs interest as high as 22%. That’s three times higher than you’ll earn on a regular investment.