Young women today are increasingly better educated, and consequently have a better chance of managing their own financial future. 72 percent of women in Germany aged between 20 and 24 have completed higher secondary education or obtained tertiary qualifications. By comparison, 71 percent of men have reached this level. In the long term, this will mean that women will essentially be on the same footing as men when they reach retirement. Brigitte Miksa, Head of Allianz' International Pensions team, suggests the following six tips for women to ensure that they will be well provided-for in old age.
1. Don’t follow the “stick-your-head-in-the-sand” policy. If you feel insecure about financial matters, seek support, i.e. from a financial advisor.
2. Get yourself an overview: collect and sort out your papers, compare income and expenditure. Rule of thumb: Save ten percent of income throughout your life, that can make a solid private retirement provision.
3. Secure your capacity to work: More important than material goods is your ability to work, because it constitutes your foundation for a regular income.
5. Provide for long-term care: Women’s life expectancy is longer than that of men. Thus, providing for the future is important.
6. Start saving early: The later you start, the more you should save. Saving four percent of your salary at the beginning of your working life, increase this amount by two percent every year up until ten percent of your salary goes into savings. Half of all salary increases should also flow into retirement provision
