Asian Women Trail Behind Men Over Retirement Planning - HSBC

Vanessa Doctor

27 October 2011

Asian women are trailing behind men when it comes to retirement planning initiatives, a new survey by HSBC and Cicero Consulting shows.

In the study titled "The Future of Retirement: Why Family Matters," 68 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 who say they wear the financial hats. The only exception is China, where 63 per cent of the females make the money decisions against 58 per cent of the males. The survey was based on responses by over 17,000 people in 17 countries, 7,300 of whom are from Asia.

The issue has significant implications for the Asia-Pacific wealth management industry, as the large number of wealthy women in the region represents a potentially crucial, if under-served, market.

In terms of retirement planning, only 29 per cent of Asian women are most likely to take sole responsibility compared to 37 per cent men. In India, retirement planning is done 21 per cent by women versus 43 per cent of men; in Singapore it's 21 per cent versus 38 per cent; in Malaysia it's 27 per cent versus 33 per cent; in Hong Kong it's 28 per cent versus 38 per cent; while in South Korea it's 32 per cent versus 35 per cent. Only in China and Taiwan do the females appear to be more aggressive, with 36 per cent involved from both genders in China and 39 per cent of women versus 35 per cent of men in Taiwan.

"The gender divide in saving for retirement persists in Asia, leaving women potentially exposed to financial hardship in later life. We expect a narrowing of this gap as more women in the emerging world receive education, join the workforce or start a business and make more decisions for themselves and their families," said Louisa Cheang, group general manager and regional director for retail banking and wealth management for Asia-Pacific at HSBC.

Decision-making activity on retirement is also divided across life stages. For one, six in 10 respondents in Hong Kong aged 30 to 39 years old do not have any short-term savings. In Taiwan, only 19 per cent of those aged 40 to 49 are protecting their assets. In South Korea, 76 per cent of people in their 50s are not saving for retirement.

"Life stages are useful prompts to either start or review a financial plan. Being able to manage a household income and build assets for the long term while protecting against risks will be critical for Asian families in the 21st century," added Cheang.

"Why Family Matters" is a supplementary report to the main 2011 report titled "The Power of Planning," the sixth in HSBC's "The Future of Retirement" series. The report surveyed 17,849 people of working age (mostly between 30 and 60 years) in December 2010.