Women experience unique challenges and opportunities when it comes to managing their wealth, including:
1. Longer lifespan
The impact of women living longer life spans than men means their savings must stretch for longer. Women may have to take into consideration planning for a longer retirement and savings required to support those additional years. Medical costs may also be higher for women than men, as they tend to outlive their spouses, forcing them to pay for their own care, while their spouse benefitted from the free care their spouse provided. Consideration: how much more do you need to save/invest to bride the gap and get there?
2. Caregiving responsibilities
Taking time off from careers to provide care can mean lifetime earnings may be less, which impacts long-term savings and retirement programs such as CPP and employer pensions.
3. Changing relationship dynamics
Widows and divorced women face many similar challenges, including the need to assume full responsibility for their financial wellbeing as well as that of their immediate family. They may also face a partial loss of income and a change in the level of income available for their future years.
These three unique factors can lead to lasting financial consequences down the road, which is why it’s important for women to begin taking a more active role in their finances.
