Women's Financial Planning Challenges and Solutions
Women face unique challenges in financial planning, especially regarding retirement. Factors such as longer life expectancy and lower average savings compared to men contribute to this disparity. The importance of making financial planning a priority for women is emphasized, along with estimates on savings needed for a comfortable retirement. The data highlights the necessity for women to take charge of their financial future to avoid potential economic struggles in retirement.
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[RepresentativeName] presents Why it is so important and how to get started.
Why should women make financial planning a priority?
What is the biggest financial challenge that many women face? Planning for retirement. Many people retire financially unprepared. For women, the risk of doing so is arguably greater.
Why do women face greater financial challenges in retirement than men? It comes down to two factors Time & Money
TIME Today s average woman will likely outlive today s average man by three years. Today s average 65-year-old woman will likely live to age 87. Sources: 2012 analysis from the Institute for Health Metrics & Evaluation; actuarial projections of the Social Security Administration and U.S. Department of Health www.msnbc.msn.com/id/47466204/ns/health-mens_health/t/american-men-finally-closing-longevity-gender-gap/ [5/21/12] www.ssa.gov/planners/lifeexpectancy.htm [10/15/12] online.wsj.com/article/SB10001424052748703410604576216950781576840.html [3/23/11]
TIME Average U.S. Life Expectancy 82 80 78 76 74 72 70 68 Men Women Source: vizhub.healthdata.org/le/ [7/14/15]
MONEY How much do you need for a 20 year retirement? A ROUGH ESTIMATE: 10-15x of your final salary in savings. 70% of your final salary in income (depending on your financial obligations). Sources: money.cnn.com/retirement/guide/basics_basics.moneymag/index7.htm [7/14/15] money.cnn.com/retirement/guide/basics_basics.moneymag/index5.htm [7/14/15]
MONEY Decades ago, our society told women that a man was a retirement plan. Not true. A woman may live alone for decades... ...and may have to fight for economic survival.
MONEY But the reality is American Women approaching retirement age have an average of $81,300. Compared to $118,400 for American men. 12% of women older than age 65 live in poverty. 17% of divorced women and 15% of widowed women live in poverty. Sources: cnbc.com/2015/03/04/women-lagging-in-retirement-saving-survey.html [3/4/15] nwlc.org/nwlc-analysis-2013-census-poverty-data [7/14/15] money.cnn.com/2014/05/13/retirement/retirement-women/ [5/13/14]
Top threat to retirement security for women? It may be long-term health care costs. Median annual rate for a private nursing home room: $91,250 Median rate for a single-occupancy bedroom in assisted living facility: $3,600/month Source: Genworth 2015 Cost of Care Survey - genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html [2015]
Are todays women prepared for financial challenges?
Women now control more than half of the private wealth in the U.S. Women outearn men in 40% of U.S. households. Women own 30% of all privately owned businesses and employ 7,800,000 American workers. Women control $14 trillion of the personal wealth in the U.S. This is 51%. Experts anticipate women controlling $22T by 2020. Source: businessinsider.com/women-now-control-more-than-half-of-us-personal-wealth-2015-4 [4/7/15]
What are the biggest wealth-building challenges for women? Saving and investing consistently even as parenting and caregiving may affect income.
Financial planning has three goals: To build wealth To protect wealth To transfer wealth
Building Wealth = Saving + Investing + Compounding
Protecting Wealth = Strategizing To defer or minimize taxes or other risks
Transferring Wealth = Directing Your Wealth To heirs or society, in a tax-efficient way
Investments are components in a financial strategy. They are not a strategy in themselves.
Dont like risk? You aren t alone. Yet you may have to assume some risk in order to try and create enough wealth for your future.
Even moderate inflation reduces the value of a dollar over time. That reality demands equity investing.
Should you claim Social Security at age 62? It may pay to wait.
At work, try to avoid: Stopping your Retirement Plan contributions Taking withdrawals or loans from your plan
Strive to Contribute enough to get the match
Do you and your spouse see money differently? A shared vision is important.
Good financial planning is holistic. It is about the future you want, not simply the money you can make.
Thank you for joining me! <<RepresentativeName>> <<RepresentativeTitle>> <<Company Name>> <<RepresentativePhone>> <<RepresentativeEmail>> <<RepresentativeWebsite>> <<RepresentativeDisclosure>>
