Pull up a seat and get ready to talk Power, Money and Security.

Picture this: a glorious beach, comfortable deck chairs, unlimited cocktails, never-ending blue skies, and golden sunlight streaming across the contented faces of a grey-haired heterosexual couple in matching casual wear. Welcome to the Google image search for ‘retirement’. It is one hell of a fantasy.

Hands up if you have a retirement plan beyond Googling ‘retirement’? Hands up if you would rather bury your head in the sand?

In Aotearoa, our savings are failing to keep pace with our spending expectations in retirement. This means for the vast majority of us, the picture of our retirement won't resemble the cocktails, deck chairs, or matching casual wear used in the marketing campaigns of KiwiSaver and investment funds.

As women, the outlook looks particularly grim. Recent research by the Retirement Commission shows a 22% gap in retirement savings between men and women. Our balances are lower too, with the average KiwiSaver balance for a man at $32,553 and for a woman at $27,061.

The widest gaps occur between men and women in their 40s and 50s. On average, women in their 40s have approximately $10,000 (or 30%) less in KiwiSaver than men, while women in their 50s have approximately $13,000 (or 32%) less.

This disparity isn’t surprising, given the usual suspects responsible for it: the gender pay gap, maternity pay gap, divorce, colonisation, cultural expectations, lower financial knowledge than men, and shame.

But wait, there’s more! Women also have, on average, lower contribution rates to their KiwiSaver than men, are less likely to have other investments, and, for those of us in KiwiSaver schemes, chances are we are in the wrong type of fund—often sticking with a conservative fund when a growth fund would be much more beneficial. Plus, we live longer, which means we need more money in retirement.

I’m tempted to bury myself even further in the sand and call it a day. As a woman in her mid-forties, have I left it too late? My plan was to work hard, pay 5% into my KiwiSaver, and rely on the National Super. Turns out, that is not going to cut it. If I want a retirement with choices—a meal out once a week and a bit of travel—I need approximately $600,000 at retirement to supplement my New Zealand Super. This seems like a lot of money to save in 20 years. Let me pull out some magic money from my magic purse.

I have heard countless times that it’s important to ‘get your money to work for you,’ but that assumes two things: one, there is money, and two, there is an understanding of what ‘working hard for me’ means.

Thankfully, the government has recently recognised the particular needs of women in its National Strategy for Financial Capability and has called on the sector to support women’s financial empowerment. Bravo, I say. About bloody time! Pass me a cocktail—welcome to 2022. I’m all for a boom in financial services products designed with the specific needs of women in mind. Bring it on. I want choices in retirement. I want a deck chair on a beach!

In response to this, the Financial Services Council has launched “It Starts with Action,” a new campaign challenging businesses in the financial services industry to step up and commit to helping wāhine grow their financial confidence and well-being. Dreams just might come true.

One of the first businesses to step up is Mercer—a KiwiSaver provider with a 1% gender pay gap and a track record for ethical, sustainable investing. They have launched The Table and the new podcast Power. Money. Security. (PMS).

The Table is a new initiative designed to support Kiwi women at any life stage or style in building their wealth. Women can come together to talk and learn—unashamedly and uncensored—about all things money: how it works, how it grows, and how collectively, women can understand it better. Acronyms are explained, complex terms unpacked, and financial jargon demystified.

It turns out there is still an opportunity to enjoy the golden weather! I haven’t left it too late! Sure, I’m going to have to get cracking and be diligent about it, but getting investment savvy is the first step.

Women, it also turns out, make better investors than men. We are more likely to show greater restraint, make fewer trades, and generally hold on to stocks much longer than men. All good stuff.

Power Money Security (PMS) is a five-part podcast hosted by Michèle A'Court, featuring interviews with a wide range of women who share their tips and tricks about how they have built their wealth. From Jane Wrightson, the retirement commissioner, who shares how becoming a single mother was a fiscal shock for her, to Latayvia Tualasea-Tautai, a youth financial mentor, on overcoming the patriarchy and learning to live alongside capitalism, and me in episode 3, where I discuss money and relationships—this podcast is a great way to learn more about the basics and the reasons behind why we need to fix the gender financial gap. Hearing my own voice has me hiding behind the couch in deep embarrassment. Maybe I can look for some small change there, or perhaps I could take note of these four tips to get retirement ready.

1. Ensure you are in the right fund for your age and stage. Most women tend to be in a conservative fund, which is suitable if you are about to use your KiwiSaver for your first home deposit or are nearing retirement. However, moving into a growth or balanced fund can yield better returns in the long run.
2. Make sure you get the annual government contribution of up to $521.43. To qualify for the full amount, you simply have to contribute a minimum of $1,042.86 of your own money between 1 July and 30 June each year into your KiwiSaver fund.
3. If you have a child, set them up in a KiwiSaver as soon as possible. If you contribute $10 per week or $520 a year from birth to age 18, they could accumulate over $14,000. This, combined with compounding interest, means that by the time your child is 25, they are likely to have over $35,000 available for a first home deposit or more if they also start contributing.
4. Start today.

A couple of disclaimers: I have, in my capacity as a gender equality strategist, worked on the development of The Table and had the opportunity to speak with financial advisors about my own situation.

*Calculations based on Sorted Kiwisaver Calculator. Figures are suggestive only and do not constitute financial advice.