Women and Wealth: 3 Things You Need to Know About Your Finances
March 8 is International Women’s Day serving as an important reminder of the progress women have made in terms of social, economic, cultural, and political achievements.
Collectively, women in Canada have more money and influence than ever before and by 2028, Canadian women will control nearly $3.8 trillion in assets. This is a significant increase compared to the past, and it shows the progress women have made in terms of financial independence and control over their financial futures.
However, with 38% of Canadian women knowing “very little” about finance and investments—and 66% reporting a "quite bad" or "very bad" financial situation—it's clear women still face many financial and professional challenges today.
We believe financial literacy is crucial in promoting progress and put together some important insights to help women better understand and overcome these hurdles.
Women Will Outlive Men but Earn and Save Less
According to the U.S. Census Bureau, 80% of women will outlive their husbands and women who get divorced live at 45% of their pre-divorce lifestyle. Not only that, but women also earn and save less than their spouses over their lifetime making retirement savings a particular struggle for women. Moreover, many women are unaware of their financial resources and liabilities, so they need to take control of their finances to prepare for their spouse's end of life or end of marriage.
Divorce Leaves Women in the Dark About Financial Matters
The average duration of a marriage that ends in divorce is eight years, and wives in traditional marriages often take time off to focus on their children. This time out of the workforce often leaves many women in the dark about financial matters. In the event of divorce—which is hovering around 50 percent—women are seen often to get the short end of the bargaining stick because they lack knowledge.
Proper Planning is the Solution
Proper planning can help prepare women financially for their spouse's end of life or end of marriage. Women should consider creating an emergency fund for unexpected events, such as job loss or medical emergencies, to avoid dipping into their retirement savings or incurring high-interest debt. Women should also make sure they have adequate insurance coverage, such as life, health, and disability insurance, to protect themselves and their loved ones from financial hardships in the event of an unexpected event. It is necessary to put together a financial plan that considers joint assets and liabilities and plans out retirement income needs for both you and your spouse's lifetimes. It is also important to have an independent third party that you both trust, become fully aware of your financial balance sheet and plan, and make the most of your resources, whether you are together or apart.
At DO Wealth, we are committed to empowering women and their families by providing them with the necessary knowledge and tools to take control of their financial future. Our team of experienced financial planners is dedicated to helping women understand their unique financial situation and offer customized financial planning services tailored to their individual needs and goals.
Contact us today and let's schedule a consultation to start taking control of your financial future!
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