“Women on the back with financial planning and that must change”

Refiloe Mpakanyane talks to Certified Financial Planner, Paul Roelofse, about financial planning for women.

The reality of women living longer than men and therefore having to support themselves financially for longer needs to be factored into financial planning.

Women can no longer depend solely on their spouse or partner to secure their finances, which puts them in difficulty.

This is compounded by modern society’s demands on women, including family life, the gender pay gap, and historical challenges to financial literacy.

Refiloe Mpakanyane speaks with financial planner Paul Roelofse who advises women, whenever possible, to take a more active role in important financial decisions.

Women live longer than men and statistics show 5% more. This forces women to support themselves much longer. This needs to be built into the planning as it puts women in a precarious position.

Paul Roelofse, Certified Financial Planner

A major setback for women is the gender pay gap. At work, women earn less than their male counterparts but have to support themselves for longer.

Payroll inequality is often the excuse why women break their jobs. They have children and continuity of employment is not as reliable as that of men…it’s an outdated approach. But the fact is that with the lesser salary, they still have to provide longer.

Paul Roelofse, Certified Financial Planner

Women also tend to be more cautious as they have a shorter view of their needs and wants. Their priorities are more focused on child care and household maintenance – an approach that Roloefse sees as short-term.

The long-term view is that you can get a bigger return over time if you take on more risk. If you focus more on the cautious side, what tends to happen is that the opportunity can be lost in the long run. because you stay away from risky assets. The compounding effect over time tends to fade if your yields aren’t that high.

Paul Roelofse, Certified Financial Planner

Scroll up to listen.

More Lifestyle