Financial Challenges that Women Typically Face in regards to their wealth:
On average, women live longer than men
•In 1970, men could expect to live to age 69 and women to age 76
•In 2016, the average Canadian can expect to live even longer –up to age 79 for men and age 83 for women*
•Longer lifespans means women will need to fund longer retirements, protect their savings from inflation for longer and can potentially pay more for ongoing health care
Women are more likely to become widowed than men
•Typically widows face a 7% reduction in their median income in the first two years after widowhood*
•Being single can mean proportionally higher living expenses and additional responsibility to manage the family’s wealth
Women tend to leave the work force, earn less and have lower pensions
•Women who leave and re-enter the workforce in order to meet family care-giving responsibilities can lose seniority, advancement opportunities and wages
•Women often have to rely more on themselves to fund their retirements and government supplements
Women tend to fall into the “sandwich” generation more often than men
•Women are more likely to take on care for aging parents and relatives at the same time as they must care for children and dependents “sandwiching” them in between
•This puts pressure on women to finance their parents’ care and their children’s futures
Challenge: Retirement planning
•How much do I need to retire?
•How much can I afford to live on/withdraw from my savings each year?
•How much will government benefits provide?
Solutions
•Personal financial planning to save more effectively –even if you leave the workforce for extended periods of time
•Investing for income strategies during retirement that minimize risk and taxation
•Insurance solutions that may provide guaranteed income for life
Challenge: Planning for children and aging parents
How can you:
•Save for your children’s education
•Pay for elder care for your parents
•Ensure your own financial security?
Solutions
•Use a financial plan to determine how much you need to save
•Education savings plans & family trusts
•Investing for income strategies during retirement that minimize risk and taxation
•Insurance strategies to relieve the financial burden of health care costs
Challenge: Financial independence during separation and after divorce
•In 2008, 40.7% of marriages in Canada were projected to end in divorce before the 30th wedding anniversary.*
•Women traditionally become the primary caregiver after divorce
•Combined, these factors create challenges including:
–Higher cost of living being a single-income household
–Saving for your personal financial security
–Revisiting your tolerance for risk in your investments and life
Solutions
•Establish a personal relationship with your current financial advisor
•Take a financial inventory
•Clarify your personal goals, then create strategies to reach those goals based on your new financial situation
Challenge: Coping with widowhood
•Life expectancy for men: 79 vs. life expectancy for women: 83
•Downsizing your retirement lifestyle to a single income
•Managing the family’s estate & transferring wealth effectively
•Emotional challenges of living alone
Solutions
•Keep your Will and estate plan updated
•Ensure your professional advisors are aware of your goals so they can create a coordinated and effective plan to carry out your wishes
Solutions to your unique challenges
Personalized wealth management
•Comprehensive investment management
•Financial planning
•Real Estate planning
•Retirement savings and income planning
•Insurance strategies
•Estate plan review
•Educational savings
•Tax minimization
*Special thanks to Catherine Arcand with RBC Wealth Management for the assistance with this blog post - healthy, wealthy and wise topic
Posted by AMANDA KU on
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