THE ASTOUNDING ECONOMIC ROLES OF WOMEN IN SOCIETY TODAY

According to the Bank of Montreal’s Wealth Institute, 51% of American personal wealth is now controlled by women. It accounts for $14 trillion. The Canadian bank also expects this to grow to about $22 trillion by 2020. This was from a report by the Business Insider on April 2015. This result has come as women are moving to hold about 52% of professional, management and related positions. Women also make up 47% of the country’s top wealth holders with assets of $2 million or more.

The American College also found out that 45% of American millionaires are women, about 1.5 million. Marketing to Women Conference, the world’s premier conference on marketing to women, said that in the US women account for 85% of all consumer purchases from automobiles to healthcare, including 89% of personal bank accounts.

“Women are the biggest emerging market in the history of the planet”. That is according to a Newsweek report. Their roles in relation to money and finances have been shifted due to the changing family dynamics.

Did you know that more than 30% of privately held businesses in America today are run by women? The employment rate for married mothers with children has also increased from 37% in 1968 to 65% in 2011.

The average American woman will earn more than the average American male by 2028. This also goes to say that by 2030, it is projected that roughly 2/3 of the nation’s wealth will be in the hands of women.

Currently, the statistics of female professional performances today are astounding. Companies with 3 or more women on their Board of Directors have 84% better return on sales, 60% better return on invested capital, and 46% better return on equity. This is in comparison against companies with no women on their boards.

 

WHY WOMEN SHOULD HAVE A SOUND RETIREMENT PLAN: THE FACTS

Despite the many years of progress, women are still fearful of ending up broke, homeless, and becoming destitute; this is regardless of their status being single, married, widowed, or divorced.

27% of women are also concerned about retirement. They are mostly uneasy about:

  • Rising healthcare costs- around 44% of women
  • Running out of money- around 43%
  • Social security going bankrupt- around 30%

1/3 of women earning an annual household income of $200,000 are fearful of ending up broke.

57% of women also admitted that running out of money is what keeps them up at night, second only to the fear of losing a spouse.

More than 1 in 7 women, nearly 18 million, lived in poverty in 2013.

One out of every four 65-year-olds today will live past 90. Only 10%, or one out of 10 will live past 95 years. It is not hard to see that with women having a longer life expectancy, they face more unique challenges in surpassing their financial goals than men.

 

THE SOCIAL SECURITY STATUS AMONG WOMEN

Here are some facts involving women’s social security benefits.

First, women naturally have fewer years in the workforce. Giving birth and being a caregiver can cost women as much as $565,000 in lifetime earnings plus $25,400 in social security benefits and $67,000 pension benefits. Of women who plan to take time out of the workforce to be caregivers, 74% believe it will negatively impact their ability to save for retirement.

Second, women receive only 50% of social security benefits usually received by men. For every dollar a man earns, a woman gets $0.78. African American women get $0.64, while Hispanic women get just $0.56. Three out of five working women earn less than $30,000 per year while 3 out of 4 earn less than $40,000 per year.

Third, did you know that in 2012, the average annual Social security income for men ages 65 and older was $16,398, compared to only $12,520 for women?

Fourth, are you also aware that women have lower median 401k account balances? For men over age 60 the figure is $84,616; for women it is just $43,722.

Lastly, 4 out of 5 women take their benefits earlier! This automatically means missing out on hundreds of thousands of dollars in retirement income. Selecting the wrong social security claiming approach can mean missing out on $100,000 or more in benefits for individuals and $250,000 or more for married couples.

A woman turning age 65 today is expected to live, on average, until age 86.6 years old. Despite the fact that women normally live 5 to 7 years longer than men, only 37 of women believe that they will need long-term care after retirement. In reality, 70% of them will actually require it. Sadly, 43% of women expect that they will work past age 70 or do not ever plan to retire.

Women are more likely to reach old age and live longer than men. When you don’t have a retirement plan, will your savings be enough? What is your plan? We can help.

THE CASE OF WIDOWS, DIVORCEES & SINGLE PARENTS

Now, more women are either single or divorced than married. The balance of power is also shifting regardless of economic matters. Women even outnumber men in the attainment of college and graduate degrees by 20%. They’re starting new businesses at twice the rate than men.

Divorcees. 48% of divorced or separated women experience financial crisis. That’s usually the only time they begin realizing the importance of being financially aware and independent. In fact, half of women older than age 65 will live 15 more years after their husbands die. The average age of widows is 59 years old.

Widows. 50% of women becoming widows experience financial crisis. Before reaching the age of 45, about 1/3 of women lose their spouses. Eight out of 10 widows between the ages 55 and 64 remarry. After 65 years old, it’s only 2%. To keep it all short, 80% of women die single, while 80% of men die remarried. At some point in their lives, 90% of women believe that a divorce or death of a husband will make them solely responsible for their lives.

Single parents. Single parents face tremendous financial crisis as well. Ordering child support and actually collecting them are two different things. Only 61% of court ordered child support is ever paid.

On top of these challenges, one in five people age 50+ have boomerang adult children who have moved back in with them.

As of today, only 7% of women are self-assured in their ability to fully retire with a comfortable lifestyle. In fact, 65% of Baby Boomer women do not have back up plans if forced to retire sooner than expected. Yet 59% of them would rather to choose to guess what their retirement savings needs should be instead of using a calculator or hiring a financial advisor. One important statistic is that women have an average of only $78,000 in retirement savings compared to $121,000 for men.

 

THE SOLUTION

The good news is women are stepping up to the challenge. They are now aware that they need to be more financially inclined.

  1. 85% of women seek to learn how they can achieve their desired retirement income to fit their lifestyle
  2. 85% of women want to learn how they can guarantee their income for life
  3. 75% of women are dying to have more knowledge on how to do investments of retirement planning for a modest income

Would you like to belong to the group of women who want to learn how to solidify their financial security after retirement? We are simply the team of experts with the experience in helping you address your needs.

The good thing also is that 66% of women believe that working with a financial advisor is the best alternative against making huge financial mistakes all over again. On the other hand, 77% of women also say that doing so will help them protect their wealth. They are even almost twice as loyal to their financial advisors as men are. When it comes to stock picking, are you aware that single females outperformed single men by 2.3%? Female investment groups outperformed men by 4.6%, and women overall outperformed men by 1.4%.

62% of women have expressed solid interest in learning more about financial planning, yet 53% of them want to in ways that are easier for them to comprehend. More than 2 in 5 women are likely to make socially responsible investments.

 

WHAT WE DO TO HELP WOMEN BUILD A FEASIBLE RETIREMENT PLAN

East Coast Tax and Financial Planning was founded with the goal of educating people, women included, to make sound financial planning strategies that allow you to reach your retirement goals. Our vast arrays of financial services are provided with your best interests in mind. Register now to receive our complimentary consultation. There is no better time than now.

Financial success for women starts with education.  With a positive mindset and action, anything is possible. So, whether you’re single, married, widowed, or divorced, have yourself well-informed. A man should not be treated as your retirement plan. Take note that 70% of baby boomer wives will outlive their husbands. When women were asked in a survey about what financial advice they would want to give their daughter or granddaughter, majority answered:  to not depend on others for financial security. Simple as it sounds, a man is not a retirement plan.

Set a financial wellness appointment with us today for free. It is worth your time.