Many Asian women 'unprepared' for retirement
MANILA, Philippines - Many Asian women are not as prepared as their male counterparts when it comes to retirement, according to a survey conducted by HSBC.
HSBC's "Future of Retirement: A New Reality" report found that only 2 in 5 women in Asia say they have adequately prepared for retirement, compared to 50% of men surveyed.
Fewer women are saving regularly for retirement 54% versus 56% of men in Asia. However, 41% of women in Asia said they would save for short-term goals, compared to 35% of men.
Of Asians who are not yet retired, men set aside an average US$380 every month for retirement, while women only set aside US$336. Singaporean women saved the most with $536 a month, while Indian women saved the least with $199.
"The Future of Retirement survey shows that people are generally unprepared for retirement but the situation appears more alarming for women as they expect to live longer with less savings. With more women getting the same opportunities in education and employment today, they stand a better chance at achieving the kind of retirement they want compared to women in past generations. But they need to take the first steps towards financial independence now," Gigi Pio De Roda, SVP and Head of Retail Banking and Wealth Management of HSBC Philippines, said.
Women are also face a bigger retirement deficit of over 10 years, since they expect to live longer in retirement 23.3 years compared to 18.5 years for men.
In Asia, 32% of women said they have a financial plan in place, while 37% of men said the same. India, China, Hong Kong and Singapore had the highest percentage of women that have financial plans. China was the only country where women outnumbered men in this regard: 40% to 38%.
"We recognize that while more women are contributing to the family income, many of them may not be making the financial decisions at home. More importantly, while they may be saving for the family, they are likely to overlook their own financial needs. Our survey shows that any form of financial planning can lead to higher savings. Whether it is setting aside an amount for your own retirement pot regularly, ensuring you have adequate health protection or speaking to a professional financial advisor to start a broader financial review, this will help women prepare for financial security in later life," Pio De Roda said.
The HSBC survey had more than 15,000 respondents in 15 markets worldwide, including Australia, China, Hong Kong, India, Malaysia, Singapore and Taiwan.