Give to gain: Why women must prioritise financial wellbeing this International Women’s Day
Financial care is a foundational necessity to enable women give sustainably to society.
What you need to know:
- International Women’s Day’s “Give to Gain” theme highlights women’s generosity while urging stronger retirement planning and financial wellbeing.
- Experts urge women to prioritise retirement savings, narrow income replacement gaps, and secure financial stability for themselves and future generations.
This year’s theme is "Give to Gain" – a Campaign that champions generosity and shared upliftment.
Women, by nature, are nurturers of dreams and givers of life. They give abundantly to families and communities, often without recognition. However, in this culture and habit of giving, women sometimes forget the need to give to themselves. Whether emotionally or mentally, they sacrifice for those around them. This also includes an often overlooked area: financial wellbeing.
Financial care is a foundational necessity that enables women to give sustainably to society. For this reflection, let us focus on long-term financial planning. Global female life expectancy is currently between 74 and 76 years, exceeding male life expectancy by about five years.
A long life, as many desire, requires sufficient income streams. According to financial industry experts, the Global Income Replacement Ratio (IRR) — the percentage of pre-retirement income needed to maintain a similar standard of living in retirement — ranges between 70 per cent and 85 per cent.
However, actual realised ratios vary significantly depending on the adequacy of personal savings. The Retirement Benefits Authority (RBA) indicates that Kenya has a low income replacement ratio, at below 40 per cent. According to a study by ICPAK, the impact of a low IRR on retirees is that 47 per cent depend on relatives, 31 per cent must continue working, and only 6 per cent are financially independent.
When women focus more on giving and overlook their future financial needs, they risk becoming part of the group that faces financial strain in retirement. When that time comes, they cannot “give back to themselves” because the planning was overlooked. If women cannot support themselves, how can they continue uplifting others in society?
As we reflect on this year’s theme, I urge fellow women to work intentionally to narrow the gap between their current IRR and the desired ratio of 75 per cent. Think ahead. Plan boldly. Consider yourself even as you give back to society. This can begin by increasing the rate of savings towards your retirement fund or by establishing consistent saving habits that support long-term security.
So what is the IRR of your current savings? A common rule of thumb is that your savings can generate a monthly income equivalent to about one per cent of the total amount saved. On that basis, Sh30 million could provide a monthly income of approximately Sh300,000 from day one of retirement and for the rest of your life.
To give sustainably, we must begin by watering our own gardens. In doing so, we gain the stability and confidence needed to uplift others without losing ourselves. For those without a retirement savings account, the ultimate International Women’s Day gift to yourself is to open one and fund it regularly. For those already saving, assess how sufficient your IRR would be if you retired today, and strengthen your savings to close the gap.
The writer is the COO, Jubilee Life Insurance Company.
