The majority of Kiwi women are not financially prepared for retirement, new research has found.
The Financial Services Council (FSC) has released its latest Money & You research showing 69 percent of women do not feel financially prepared for retirement, compared to 56 percent of the whole population.
"The reality is that an estimated 2.3 million or 56 percent of New Zealanders aged 18 or over aren't financially prepared for retirement, and the majority are women," FSC chief executive officer Richard Klipin said.
"Investing now means having financial security, which is critical for a dignified retirement, but the majority of Kiwis are on auto-pilot when it comes to planning for the future."
The report found 42 percent of New Zealanders are contributing the minimum three percent to their Kiwisaver and two-thirds of employers (64 percent) are matching that.
This means there are many Kiwis who won't have created sufficient KiwiSaver funds for even a 'no frills' retirement, the report said.
"Although some will be prepared and have got advice from their provider or financial adviser, many just don't know what they might need," Kiplin said.
Kiplin said it is a balancing act in today's high-interest environment.
"Kiwis are having to manage on less day-to-day and make trade-offs between living today and saving up for a comfortable tomorrow," he said.
The research shows there is a general "Perception Gap" that is blindsiding Kiwis' financial management ability when planning for short-term and longer-term needs.
The Perception Gap is created when there is a mismatch between confidence in making financial decisions and a real understanding of financial concepts, especially when it comes to more complex decisions around managing risk, investment and retirement.
The research shows there is a 20 percent gap between the number of Kiwis who perceive financial confidence (82 percent) and those that have a real understanding of the four financial concepts tested (62 percent).
"Finances can get complicated, so whether your concern is short-term cost of living or long-term investment and retirement planning, talk with whānau, your provider or an adviser and close your Perception Gap – it will help improve your financial confidence and wellbeing," Kiplin said.
