AUSTRALIA: An 84-year-old Australian surprised his nation by turning out to be a millionaire, and the ensuing buzz exposed a shocking truth: Women Down Under have far less savings than men.
The facts came out in a survey by the property app Copoist, reports news.com.au. The man revealed he had had $2.3 million in savings, leading others to wonder how he amassed so much. The retiree didn’t disclose the source of his wealth.
The news became a hot topic when women aged 64 to 75 shared having only AU$ 61,000 to AU$ 100,000 (S$51,734 to S$84,810) in savings, highlighting the deep financial gap between men and women in Australia.
Singapore is not free from disparity either. Women are paid less than men, though the gap has narrowed.
According to the financial comparison website Finder, men in Australia generally have more savings than women. Finder’s Equal Pay Day Report 2024 pointed to reasons like career breaks for raising children, working flexible jobs to care for family, and being in specific careers or industries.
However, money expert Rebecca Pike stressed that financial security is still a big part of the Australian dream and said education is key.
She added, “The most valuable investment you can make is in your own financial education. Learning the fundamentals of personal finance is crucial. This includes understanding how to create a budget, track your spending, and save effectively.”
In Singapore, while the gender pay gap has narrowed, full-time female employees aged 25 to 54 still earn 14.3% lower than their male counterparts, an improvement from 16.3% in 2018, according to the latest Ministry of Manpower (MOM) data.
The millionaire in a one-room rental flat
Like Australia, Singapore also has unlikely millionaires — ordinary people who have grown rich through careful financial planning.
In 2022, The Straits Times shared the story of a Singaporean man in his 80s who lived in a modest one-room rental flat, though he had S$1 million in savings and other financial products.
He lived simply, buying food from nearby markets and hawker centres, making him seem just like other retirees. But he had a well-planned retirement strategy, with significant savings, monthly deposits from his Central Provident Fund, and four private annuities, each costing hundreds of thousands of dollars.
Though it’s unclear why he opted for a small flat, he was careful with his finances, never missing a rent payment even as his health worsened. His financial situation was only revealed after he was admitted to a nursing home due to dementia.
His stay was funded by government subsidies, as no one could access his bank account until his caregivers appointed a legal representative, or “deputy”, to manage his assets.
The deputy can then use his funds to set up a trust with the Special Needs Trust Company (SNTC), a non-profit supported by the Ministry of Social and Family Development (MSF). This trust helps manage funds for individuals with special needs, with most costs subsidised by MSF.
For individuals with sufficient means, like the elderly man, SNTC case managers typically use their funds to place them in private nursing homes for better care, as they can no longer make decisions for themselves.
While financially savvy retirees in government welfare homes are rare, cases of dementia patients with significant assets are not uncommon. The concern is that many of these individuals live alone or lack family support, and their situation is often only discovered when their health declines.
Cases like this serve as a reminder of the importance of planning ahead, especially when facing unexpected challenges. But can planning ahead narrow the financial divide? /TISG
Read also: How much salary do young Singaporeans need to live comfortably in Singapore?
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