MoneyMagpie

Sep 19

Why women need to save more for retirement than men

Saving for retirement is a necessity for everyone. However, women need to save more than men do towards their golden years. Along with a higher life expectancy, there are other factors that determine why you, as a woman, may need a larger corpus than a man to live out your retirement without financial strain.

To save, beat inflation and gain from savings, you can invest in a customised Fixed Deposit for Women.

Choose a top financial institution to invest with to make the most of your savings and gain high returns. For instance, Bajaj Finance offers you Fixed Deposits with an interest rate up to 8.40% (going up to 8.75% for senior citizens). You can also gain from an additional 0.25% upon renewal of your FD. Now that you know where to invest, look at why it is essential that women save more than men.

 

Women don’t usually invest in high-risk instruments

Often women steer clear of risky investment options like equity or mutual funds, to avoid loss of principal. However, as you reduce your exposure to risk, you also eliminate chances of gaining higher returns. While staying away from the risk of losing your capital can give you mental peace, you may not be able to grow your wealth, which can contribute to your financial resources for the future.

 

Women work for a fewer number of years

As primary caregivers, women struggle to balance increasing work and home responsibilities, which leaves them with fewer employment years. Due to more career breaks, women are left with lesser time to earn and accumulate funds for your retirement.

 

Women are paid lower salaries than men

Despite the progress towards gender equality, women are still paid a salary that is lower than their male contemporaries holding the same position in many fields. Having a lower salary in hand gives you fewer resources to divide between each month’s expenses and savings.

 

Women tend to pitch in for household expenses as well

In most homes, whether you are a professional or a homemaker, you contribute to the household’s living expenses, your children’s education and other lifestyle expenses. This means that all your income is not reserved for personal expenses, thereby reducing your savings towards retirement.

 

Women may take care of their parents and siblings as well

Whether you work or stay home after marriage, you may have members of your own family who are dependent on you. You may send money or shop for your parents and siblings to take care of their needs. You may also be paying for the education of a younger brother or sister. This means you may have a reduced amount to save and invest for your retirement.

Given these reasons, it is essential that you not only save, but also invest in a safe option like an FD to maximise your returns. You can also check your maturity amount easily with an FD calculator and avail the best FD interest rates. This will help you meet your financial goals and live an independent life today and in the future.

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