Are you a woman who feels like you're not making the most of your KiwiSaver? Westpac has some advice that could help you close the gender gap and potentially earn tens of thousands of dollars more over your lifetime. But here's where it gets controversial: it's time to take a risk and consider investing in higher-risk funds.
Westpac's research shows that the gender gap in KiwiSaver balances has narrowed, but women still have lower average balances than men. While men contribute and save more, women live longer and are more likely to be in less risky funds. This could cost women up to $200,000 over their lifetime.
The key issue is that higher-risk funds have historically delivered higher returns. Aggressive funds have returned an average of 9.5% per year over 10 years, compared to 4.2% for conservative funds. This means that women who take a more defensive strategy early in life could miss out on tens of thousands of dollars over the decades.
So, what can women do to close the gap? Westpac's general manager, Sarah Hearn, encourages women to consider the type of fund they're in and whether it's right for their long-term goals. She also urges women to talk about their financial decisions and be more open about their KiwiSaver balances and returns.
But here's the catch: taking on more risk could mean larger up-and-down movements in your balance over time. So, it's essential to check the type of KiwiSaver fund you're in and make sure it's in line with your risk appetite and timeframe.
Are you a woman who feels like you're not making the most of your KiwiSaver? What do you think about Westpac's advice to take more risk? Share your thoughts in the comments below!
