Women in Asia Still Trail Men in Planning for Retirement

Men are taking the lead in decision-making across most aspects of financial planning, according to a latest report by HSBC: "The Future of Retirement: Why family matters". Conducted by Cicero Consulting across over 17,000 people in 17 countries, the research explores changing attitudes towards retirement and financial planning.

Sixty eight per cent of Asian men and 65 per cent of men worldwide say they make all or most of the financial decisions in the household, compared to 58 per cent and 53 per cent of women in Asia and globally, respectively. The only exception in Asia is China, where 63 per cent of women claim they make all or most of the financial decisions, compared to 58 per cent of men. However, managing the household budget is the only area where more Asian women (35 per cent on average), compared to men (30 per cent), are taking sole responsibility.

In terms of retirement planning, only 29 per cent of Asian women are most likely to take sole responsibility, compared to 37 per cent of men. The picture is somewhat consistent across countries: India (21 per cent women vs 43 per cent of men), Singapore (21 per cent vs 38 per cent), Malaysia (27 per cent vs 33 per cent), Hong Kong (28 per cent vs 38 per cent) and South Korea (32 per cent vs 35 per cent). In China, this is true for 36 per cent of both genders and in Taiwan, for more women (39 per cent) than men (35 per cent).

Louisa Cheang, Group General Manager and Regional Director for Retail Banking and Wealth Management HSBC Asia-Pacific, said: 'The gender divide in saving for retirement persists in Asia, leaving Asian women potentially exposed to financial hardship later in their lives. One can expect this gap to narrow as more women in the emerging world receive education, join the workforce or start a business, and make more decisions for themselves and for their families.'

The HSBC report points to a myriad of evolving financial needs as individuals and families go through various life stages. Across Asia, an average of 66 per cent respondents say that they have a financial plan in place, yet despite these plans, there appear to be significant gaps in the financial planning throughout adult life.

For example, six in 10 Hong Kong respondents aged 30-39 years old do not have any short-term savings. Only 19 per cent of Taiwan respondents aged 40-49 are protecting their assets; 48 per cent and 47 per cent of parents in Malaysia and Hong Kong, respectively, have no life insurance; three in four South Koreans in their 50s are not saving for retirement. In Singapore and Hong Kong, only a tenth (12 per cent and 10 per cent, respectively) in their 50's are undertaking tax planning with 80 per cent and 94 per cent of all respondents, respectively, without a will.

Ms Cheang said, 'Life events are useful prompts to either start or review a financial plan. Being able to manage a household income and build financial assets for the long term, while protecting against financial risks throughout life, will be critical for Asian families in the 21st century. Asians need to balance the need to protect wealth and investments in the short- and medium-term with the need to generate an adequate retirement income in the long-term.' Across Asia, 23 per cent of respondents regard themselves as conservative investors, with women (28 per cent vs 20 per cent of men) more likely to sacrifice returns to protect their investment. This general risk aversion is also reflected in how people are currently saving for retirement.

"Fifty-four per cent of Asians fund retirement via cash savings accounts and nearly half (49 per cent) hold insurance ie endowments and investment-linked insurance, led by Singapore (72 per cent and 67 per cent, respectively);

"A third (33 per cent) rely on state pensions such as social security, led by China (67 per cent);

"31 per cent invest in bonds and term savings accounts and 29 per cent hold mutual funds and investments, led by India (40 per cent and 55 per cent, respectively); and

"Over a fifth of Asians on average invest in annuities to fund retirement.

Ms Cheang added: 'Asians tend to apply a do-it-yourself approach combined with advice from family, friends and occasionally, a professional financial advisor. HSBC works closely with our customers to understand their needs and provide integrated solutions that harness our strengths in insurance, wealth and asset management to help customers protect and growth their wealth for every stage and ambition of their life.


SOURCE: http://www.thefinancialexpress-bd.com/more.php?news_id=154666&date=2011-11-01