German Association

Wrap and Windows – more and more women manage the balancing act between private and professional life. But many give a wide berth to the subject of pensions. While they have to take special precautions. That women are at once very pale to the nose in their presence, Heath Hartel-Herrmann happens frequently. Namely, if the independent consultant to the women’s financial service in Cologne has calculated above their clients that they have done so far too little for their retirement. Because unfortunately women average always even rarer than men deal with their money matters, and are usually even worse informed. Too bad really because when women take their finances even in the hand, then often correctly successfully: According to several studies, women achieved a higher performance than men with their deposits, invested in but more conservative and more targeted.

“Early start of interest just for women is the subject of private old-age provision particularly important”, affirms Merten Larisch, age pension expert of the Bavaria consumer Center. The sooner they start, the better.” Namely, a handsome capital stock can be built already with low savings rates in the long run. That is the charm of the compounding”, Halder-Herrmann. Typical female pension problems women have it mostly harder than men, to build up a sufficient retirement savings. This has mainly three causes: broken acquisition biography family break, part time job, or even withdrawal from the labour market of children due to – all this reduces the demands placed on the statutory pension insurance.

Same work, unequal pay women earn less than men on the same position in the section about 20 percent. That diminishes their retirement later. Women live longer than men have aged with their additional private savings longer come out. Women have it right in many respects more difficult than men to provide (see box left). Statistically live longer and need money therefore aged longer. A currently 35-year-old woman has one according to the German Association of Actuaries Life expectancy of 96.5 years, a man only”92.1 years. And a girl born today has the promise of being even 103 years old. Suppose it comes with 67 in retirement, then it has to run financially 36 years. But what? The amount of subsequent statutory pension depends of the own purchase biography above all of the content and the number of years of employment. Women are men, however, but on average only 26 years, 37 years employed. Their pension entitlements are therefore usually much lower than that of men, and are often still overrated (see graphic below right). Many women get off whole or temporarily out of the job, when they have a child and fail in this time to build a foundation for the age private. When even the divorce comes, it will be really bitter for many (see Glossary). Bird-ostrich behavior is”a big mistake, judge Hartel-Herrmann. Women in the children break should insist from the common Family income regularly for an own supplementary pension to save.” High time for women so to care more about the pension and is not on the men to leave. As always, there is no patent solution. Assuming the risk hedging is dry (see on page 28), should women take to three questions: what do I need in retirement, what I already have, and what do I need in addition to close a possible gap.

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