The three reasons women often lose out, and how a solid financial plan can secure their future.
Women in New Zealand, as modern, educated, and independent as they are, can be their own worst enemy when it comes to creating a long-term financial plan and securing their future.
The main objection may be familiar to you - not enough time. However, we’re here to remind you why now is the best time to start. Don’t put it off any longer - a short-term investment of time now will reap handsome rewards in the long run.
Although women in New Zealand are likely to be involved in the day to day planning and management of household finances, they sometimes fall short when it comes to long-term financial planning, especially retirement planning.
There are a couple of factors already working against women aiming to match their male counterparts’ retirement investments - the gender wage gap and time off work for maternity leave and child-rearing - but this doesn’t mean there’s nothing you can do.
Given the fact that women are more likely to live longer lives than men, it’s important that women understand the need to create a financial plan now to set themselves up for a comfortable retirement, however long it is.
Maree Gordon, financial adviser at NZFP, has worked with women at all stages of life to develop personalised plans that provide a secure and comfortable future for them. As a professional woman and a mother, Maree understands the challenges facing women in New Zealand when it comes to managing their finances. She seeks to empower women through financial independence, education, and planning for the future.
With the support of a financial adviser like Maree, it’s easy to overcome the obstacles that are holding you back, and enjoy a sustainable journey toward financial independence.
What are the three common roadblocks that prevent women from engaging in long-term financial planning?
1. Women are often time-poor.
Where oh where will you find the time to look at your finances? There’s work to worry about, whether the children are passing exams, and the dog has been making some funny noises and might need a costly vet trip - how can you think about future planning when there’s so much going on in the present?
It’s easy to slip into the comfortable belief that as long as your Kiwisaver is ticking along and your nest egg or house is secure, that’s all you’ll need. But it’s not that easy.
When you’re comfortable in the present it’s hard to imagine things changing, but as recent months have shown, no one is immune to the sudden shock of redundancy or illness. An investment of time now to sort out your financial plan can ensure that you’re able to make the most of your earning years to set yourself up for stability and success in later life.
The confidence that comes with knowing where you stand financially enables you to say “yes” to that new house, taking a trip around NZ, or helping the kids through university, without worrying about your own future.
Once your plan is established, you can pay as little or as much care to it as you like - we’ll be taking on active management to ensure you’re getting the most out of your money, and reporting on progress to keep you up to speed on where your investments are at.
2. Some women put themselves last.
When you’re so busy keeping home, work, and social plates spinning, how often do you say “I should do this … I can do it myself”, but then end up prioritising tasks for other people over your own future needs?
Caring for yourself is part of caring for your loved ones. Ensuring your own financial stability now will serve as an anchor later in life, keeping you safely moored no matter what economic or personal circumstances come.
Putting yourself first can be as simple as gaining the professional help of an adviser. Just like in business, there are tasks in our personal lives that are worth getting professional advice for. Once you’ve been through the process of setting up your financial plan, you can continue enjoying your present and let us take care of your future.
Remember that as women live longer than men, we need more in our retirement pot to keep us satisfied and secure. While it’s easy to delay thinking about retirement now, now is the best time to set yourself up for security.
“I see a lot of women who are very good at their jobs, and very good at running the house, but not good enough at considering their own situation. They don’t see that putting themselves first also puts their family first.”
- Maree Gordon
Financial Adviser, NZFP
3. Women tend to be more risk-averse than men.
Women are generally more risk-averse than men, and while this doesn’t prevent them from making a long-term financial plan, it can lead to missed opportunities to maximise the growth of their funds over time.
It can feel like an uncomfortable trade-off - either keep your money in a conservative account and miss out on growth, or put it in an aggressive, high-risk portfolio that’ll see a steeper trajectory but also face a more volatile ride.
“It’s not about choosing either end of the risk spectrum, it’s about working out what’s right for the individual, according to their risk comfort level. Through discussion and education, you can choose comfortably what level of risk will be worth it for your goals.”
- Maree Gordon
Financial Adviser, NZFP
With the support of a financial planner, you can find the right balance of risk and reward to suit your risk comfort level and meet your financial goals. We see education and understanding as the keys to financial confidence that help us to find the perfect plan for you, so you don’t miss out on your potential.
How can a financial plan create sustainable security for your lifestyle?
With the help of a trusted financial adviser, you can create a personalised plan to enjoy your ideal lifestyle for years to come. It doesn’t have to be daunting or intimidating - our role as financial planners is to make it easy for people like you to create long-lasting security and a sustainable cashflow that reflects your life goals and values.
A quality financial adviser will do more than just manage your funds, our advisers at NZFP will:
- Bring order to your finances and clarity to your current situation.
Work through your current financial incomings and outgoings to figure out your surplus, and how much you stand to have by the time you retire. We’ll break it down so it’s easy to understand and make sense of, so you know exactly where you sit with your finances.
- Keep you on track toward your goals, even as they evolve with your life-stage.
Situations change, and goals can shift depending on what happens throughout your life. We’ll be here to keep track of where you’re at, and help you maintain progress toward those outcomes no matter what.
- Anticipate the upcoming challenges and opportunities in your life-stage.
We’ve had decades of experience working with people at all stages of life to plan for a solid financial future, so we understand the different challenges and opportunities that each stage of life can present. We’re already looking ahead, so you can focus on your present.
- Widen your financial education through understanding and facilitating good financial decision making.
We know that understanding your finances is key to making the best financial decisions for your future, so we work with you to make sure you understand exactly what the pros and cons are of each option available. It’s a gift you can pass down for generations.
- Offer ongoing support and partnership.
We care about seeing you succeed, and witnessing the positive effects that security and financial wellbeing can have on people of all ages and backgrounds. We’re with you for the long haul, providing clarity and taking the burden of finance off your back. Partner with us, and feel the difference.
