Women: Wield Your Financial Power

    Facebook Twitter LinkedIn Email

By Diane Gallagher - March 27, 2019

Nine in ten women will be solely responsible for their own or their family's finances at some point.* Women, now's the time to exercise the power you have over money and apply it to your financial future. Men, share these points with the women in your life.

Positive Strides and Gaining

During Women's National History Month, it's good to remember that women have made some positive advances regarding finances, such as:

1 Wells Fargo Investment Institute , 2016.
2 The Boston Consulting Group, New Strategies for Nontraditional Client Segments, 2016.
3 The American College of Financial Services, Women's Research Reveals Financial Risk and Unmet Opportunities, 2016.

But Challenges Still Exist

Despite making headway over the past several years, women continue to face gender pay gaps  that can affect our financial futures.

  • Women earn 78 cents for every $1 earned by men
  • And are less likely to hold high level or high paying jobs versus men

That means that women's earning potential is or has been limited, and they may be missing out on key earning opportunities. While those are systemic employment obstacles, knowing they exist is part of the battle.

That's also why it's important for women to have a solid savings plan, especially for retirement. No one wants to look back with regret. And the best way to avoid that regret is to plan ahead. As you start to plan, or refine your plan, keep the following considerations in mind.

Live, Love, Laugh Longer

Average life expectancy for women is 81.2 years. If you're coupled up, women statistically live longer than men (the average U.S. male life expectancy is 76.3). While time is a gift, it's important to understand it will also cost more to live longer.

The time to get involved in planning is now, especially if a spouse has been primarily responsible for the investments and financial plan, or if you've been putting off creating your own plan. Two important things to figure out now: 1. How do you want to live in retirement? And 2. How will you pay for it?  The basis of your plan is as simple as thinking through the answers to these questions.

Mind Your Money

Some women may find they can pay for their futures with an inheritance. The financial industry is predicting a great wealth transfer—some $30 trillion—over the next few decades and many women will likely inherit the bulk of it from spouses or aging parents.

However, inheriting money can bring challenges too. Regardless of the amount you may receive, you still need to preserve and hopefully grow it. Unfortunately, only 22 percent of women   have a wealth management plan in place.

Solve for the Sandwich

As members of the sandwich generation —people responsible for caring for children and aging parents—women are most in the middle. One in eight women ages 40 to 60 are caring for at least one aging parent in addition to their own children. And women account for about two out of three caregivers for seniors.

Even if money isn't an issue now, it could become one further down the road if you're spending resources in the present. How can you prepare for your own future in the midst of other obligations? The key is proper retirement and estate planning.

Take Control Now

Women take care of budgets, bills and drive 70 to 80 percent  of buying decisions. Apply those same strengths to your financial future. No matter where you are in life, the best time to use your financial power is now.

    Facebook Twitter LinkedIn Email

* Five Reasons Women Are Taking the Lead In Financial Planning, Forbes, August 2017.

Diane Gallagher
Diane Gallagher

Let Us Help You Plan

Discussing the path that may be best for you is why we're here. Let us help you seek the kind of retirement you dream about.

 

Review Strategies
  • Related Articles
  • More From Author

SEPs & SIMPLEs: Power Up Your Business

Learn how providing a SEP IRA or SIMPLE IRA could power up your small business—and its employees—with tax benefits.

Maximizing Social Security: It's Personal

Did you know there are different strategies for taking Social Security? Learn why choosing one should be personal to your situation.

4 Facts to Know about Social Security

Get the facts now to make retirement easier down the road.

    Aging Parents, Adult Kids Agree: Money Talks Are Hard

    It's surprisingly common for families to avoid discussing inheritance planning. Here's how to reframe the dreaded money talk.

    5 Lessons to Teach Kids Money Smarts

    Talking to your kids about money can give them financial confidence as adults. These subjects will help you get started.

    Giving Tuesday: A Reminder of Our Impact

    On the heels of Black Friday and Cyber Monday, think about your impact.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

      American Century Investments is not responsible for and does not endorse any comments, content, advertising, products, advice, opinions, recommendations or other materials on or available directly or via hyperlinks from Facebook, Twitter or any third-party website. Facebook, Twitter and LinkedIn are registered trademarks of their respective owners.