Sisters must do it for themselves

Most women are required to retire at 60, unlike men, and more than half of those born since 2000 will live at least 40 years in retirement. One of two scenarios is likely: they’ll have to create an income well past 60 or rely on government or family.

If you’re 35 and haven’t started saving for retirement, you have about 300 pay cheques left from which to build a retirement fund. For most women that’s optimistic.

“There are two main reasons for the poor savings rate among women – divorce rates are higher than in the past and women traditionally earn less than men,” says Liberty’s Faeeza Khan. “Women have to start taking responsibility for their own financial futures.”

Because women live longer than men, they have a higher chance of running out of savings. They also may not have their partner’s income to fall back on.

How do you stop this?

Always start with financial planning, says Khan.

Figure out your goals. Get a financial advisor. Get your expenses under control and ensure the first payment you make each month is to your savings: 15% of your net salary.

Plough any bonuses or other cash windfalls you receive into savings.

If you haven’t started saving, start now. Even R100 here and there makes a difference; R500 in a taxfree savings account will grow into a meaningful sum through compound interest.

Where there’s a will

A will is something we all should have and is simple to prepare.

To be valid it must be in writing, written by a person over 16 who is of sound mind and it must be witnessed. If it is signed with a thumb print or mark, it needs to be witnessed by a commissioner of oaths, says Khan.

It allows you to specify how your assets are to be distributed.

A will also allows you to nominate guardians for your children.

A testamentary trust can be created in the will for minor or disabled children.