Why Is a Financial Plan Critical for Women?
These 3 facts suggest that women need substantially more retirement assets than men and that women have to work harder to earn them:
Fact #1: Many women live longer. American women are expected to live 81 years, which is five years more than men. If both men and women retire at age 65, then women need 16 years of retirement funding and men need 11. This 5 year difference in their life span means women need an average of 45% more funding for their retirement than men need.
Fact #2: Many women make less money than men. This is a particularly disagreeable fact but one that needs to be voiced when doing the math. Statistics show that women earn 79 cents for every dollar earned by a man in the same industry, in the same role, with the same qualifications. Earning less means that saving more now is critical. This wage disparity results in most working women needing to work 20% more just to generate the same amount of financial savings. Professional women who are primary breadwinners for themselves and/or for their families are thus impacted by the statistical wage disparity and especially need to plan accordingly for their retirement.
Fact #3: Many women work less than men. No they don’t, but yes they do. Let’s look at it. First, childbearing, caregiving, and family management can measurably reduce many women's earning power. These responsibilities take many women out of the workforce, place demands on daily productivity, and impact their careers. From career re-entry post-childbirth to senior care, many women's incomes can be affected by their essential role as Caregiver in Chief for their families. On a related note, women who depend on their husband to provide for their financial future have just as much reason, if not more, to ensure that their family has a sound financial plan. This is especially true given the risks she and her family would suffer in the event of divorce or a lapse in her husband's health.
Face the Facts:
Having an actionable financial plan to fund your retirement years is a must. Contact us today and let's build your plan.