Are you a woman who's been told to take more risks with your KiwiSaver? While it may seem counterintuitive, Westpac's latest research suggests that women could be missing out on tens of thousands of dollars by sticking to more conservative investment strategies. But here's where it gets controversial: is it really fair to blame women for not maximizing their KiwiSaver returns? And this is the part most people miss: the gender pay gap and time out of the workforce are significant factors in the disparity between men's and women's KiwiSaver balances. But that's not the whole story. Women are also more likely to be in less risky funds, which could be costing them dearly in the long run. So, what's the solution? Westpac's general manager of product, sustainability and marketing, Sarah Hearn, urges women to talk about their financial decisions and consider the type of fund they're in. She also encourages women to take on a little more risk with their KiwiSaver, especially if they're saving for the long term. But is this advice really enough to close the gender gap? And what about the role of financial literacy and access to financial advice? These are the questions that need to be asked as we continue to explore the complex issue of gender inequality in retirement savings. Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make, spend and invest money.
