Retirement planning is an essential component of financial security for all individuals, but it is particularly significant for women due to the unique challenges they face. Understanding these challenges and taking proactive measures can help women ensure their financial stability and enjoy a comfortable retirement. A recent report by The Family Office highlights the importance of retirement planning for women, the specific challenges they encounter, and the role of bespoke investment portfolios in addressing these issues.
The Family Office, operating in Bahrain, Dubai, and Riyadh, is regulated by the Central Bank of Bahrain, The Dubai Financial Services Authority, and the Capital Market Authority of Saudi Arabia, serving numerous families, individuals, and investors. Women face several challenges in retirement planning, including longer life expectancy, career breaks, and lower lifetime earnings compared to men.
Longer life expectancy means women need to plan for a longer retirement period, often requiring a larger retirement fund to maintain their standard of living. Career breaks due to caregiving responsibilities can lead to fewer years of earnings, reduced pension contributions, and a smaller retirement fund. Lower lifetime earnings, despite progress in closing the gender pay gap, also impact women's retirement readiness.
Bespoke investment portfolios can significantly address the unique challenges women face in retirement planning. These portfolios are customized to meet individual financial goals, risk tolerance, and investment horizons, offering advantages such as diversification, risk management, and growth potential. Investments in private markets can help bridge the gap created by lower lifetime earnings and career breaks, contributing to a more robust retirement fund.
Creating a solid retirement plan involves several steps, including assessing your financial situation, setting retirement goals, calculating retirement needs, creating a savings and investment plan, and monitoring and adjusting your plan regularly. Starting early and maintaining consistency in retirement planning are crucial for securing a stable financial future.
Abdulmohsin Al Omran, Founder and CEO of The Family Office, emphasizes the importance of early planning: “The sooner you start planning for retirement, the more time your investments can grow and compound over time. Regular, strategic contributions can significantly enhance your retirement fund, ensuring financial security and peace of mind.”
Retirement planning is a vital endeavor for women, given their unique challenges and longer life expectancy. By leveraging bespoke investment portfolios, women can address these challenges and secure their financial future.
