'I am woman, hear me roar', so the Helen Reddy song goes, which describes how wise, strong and invincible women are. Yet, when it comes to managing finances, married women in particular are actually highly vulnerable.
They do not take enough initiative to do as much for themselves as they should. Instead, they often leave key decisions to their spouses. Surveys indicate that many lack money management skills, have insufficient savings because of disrupted careers, and lack financial security as they age.
A key finding of a recent study by the Tsao Foundation, Citi Singapore and the National University of Singapore was that, in almost all cases surveyed, children's education has top priority in family expenditure.
As women spend their whole lives taking care of others, they become disproportionately vulnerable in their old age and might not have the support they need then.
This is one of the issues the newly launched Citi-Tsao Foundation Financial Education Programme for Mature Women will try to address.
To be rolled out from July, it aims to help middle-aged women become more assertive in asking for financial resources from other family members, save more and steer clear of debt traps. For instance, it will raise awareness that there are education loans available at low interest rates.
Facts about women
They live longer than men but retire at a younger age.
Ms Yashodhara Mishra, a senior vice-president at ipac financial planning, said women who take time out to become the family's caregiver need to accumulate more retirement funds over a shorter working life.
Many aged 45 to 60 spend their productive years as housewives taking care of their families.
'Thus, they are able to make only basic or minimal contributions to the Central Provident Fund. Some have none at all,' said Tsao Foundation president Mary Ann Tsao.
They tend to be conservative in their investments.
OCBC Bank's vice-president of group wealth management, Ms Anne Tay, noted that women generally prefer to take less risk, choosing very safe investment instruments such as savings and fixed deposits, to grow their wealth.
They have less earning power than men on average.
More are getting divorced.
They tend to suffer from more debilitating diseases in old age.
Given these realities, it is imperative that women take charge of their finances as early as possible.
Alpha Financial Advisers manager Cai Zong Zhen says single, divorced or widowed women should set financial goals for their dependants and themselves, and work out their funding needs.
They should also protect themselves in terms of income-earning ability, possibly with income replacement coverage, and ensure they have adequate health-care cover.
Married, with or without children
Beyond joint accounts with spouses, women should have their own emergency funds, and savings or investment accounts, said Ms Cai.
They should also ensure that mortgage loans for joint-tenancy properties are mutually insured and will be paid off should the husband die. Another thing to ensure is that their children's education and lifestyle needs are taken care of, moneywise.
'A man is not a financial plan. However, ensure your husband provides for your retirement funds if you have stopped working to take care of the children,' she added.
By life stage
Here are some suggestions from OCBC's Ms Anne Tay on what women's financial priorities are at different life stages.
20s - Have the discipline to save through monthly savings and investment plans. Such plans allow young adults to enjoy the benefits of compounding even when they put aside just a small, fixed amount every month.
Saving and investing early, even in small amounts, goes a long way towards helping you accumulate a significant sum in later years.
If your parents have bought insurance for you, you should review your insurance needs. Where necessary, fill the gap.
For example, for life insurance, get a term plan if you have dependants and are on a tight budget. You should also consider critical illness cover, hospital insurance or even disability income insurance.
30s - When you are ready to start a family, focus on what the children you plan to have will need, such as educational funds, critical illness plans and medical insurance.
Mothers should also start saving for retirement if they have not already done so.
You should ensure that you are sufficiently hedged against your liabilities, which would have gone up. They could include an increased housing loan or renovation costs for your flat.
Once you have dependants, you should ensure that their lifestyles will not be affected if you are not around to provide for them or are unable to do so.
40s - Aim to start paying off your liabilities. You don't want your mortgage debt to carry into your retirement years, so you must start focusing on retirement planning if you have not done so yet.
At this stage, your income would have increased. It is a good time for you to review your insurance coverage, for example, to ensure your critical illness plan covers you beyond the age of 60.
50s - You should ensure that your retirement plan is on track and that you have instruments such as annuities in your retirement portfolio to hedge against longevity risk.
Your investment risk profile might change, but do stay invested and work as long as you can and avoid drawing down on your retirement portfolio too early.
