Charting a course in planning for a secure financial future can hardly be described as smooth sailing. Today, more women are marrying later in life, getting divorced more frequently and outliving their spouses by an average of seven years. More women than ever are choosing not to marry at all. As a result, 80-90 percent of women will be solely responsible for their finances at some point in their lives. (Source: National Center for Women and Retirement Research). Yet many women have lagged behind men when it comes to financial planning and investing. Unfortunately, many women become involved for the first time during a crisis such as a spouse’s death, divorce, job loss, illness or bankruptcy.
While the general principles of financial planning are universal, statistics reveal that many women face these unique financial challenges during their lifetime.
1. Women earn less. – Women currently earn only about 77 cents for every dollar earned by men. (Source: Institute for Women’s Policy Research Report, “Still a Man’s Labor Market: The Long-Term Earnings Gap,” 2008)
2. Women invest more conservatively. – Women tend to be more cautious than men. While conservative investments have their place in a portfolio, investing too conservatively can endanger financial security by not providing adequate resources. (Source: Oppenheimer Funds)
3. Women receive less retirement benefits. – Women retirees receive about half the average pension benefits that men receive. Women also tend to receive lower Social Security benefits than men. Due to fewer years in the workforce, fewer years with a single employer and lower pay are all factors that may contribute to a lower average pension for female retirees. (Source: Institute for Women’s Policy Research Report 2008)
4. Women are living longer. – To top it off, women have longer life expectancies than men by an average of seven years and are often widowed by age 56. (Source: United States Department of Labor)
These statistics may be startling – but it’s not too late to start charting your financial course. Seek the advice you need from a financial planner. Why not get started today?
For more information contact Rebecca Robins, CPA/PFS, CFP™, CA Insurance Lic#0D75745 at 661-222-2331, located at 25129 The Old Road, Suite 105 in Stevenson Ranch. Securities offered through Associated Securities Corp. (ASC), member FINRA/SIPC. Advisory services offered through Associated Planners Investment Advisory, Inc (APIA), ASC, David S. Reinders, CFP, Inc., Registered Investment Advisors. David S. Reinders, CFP, Inc. is not affiliated with ASC or APIA.