The Unique Challnges of Women Investors

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More than half of women surveyed recently are the primary breadwinners in their households, and women continue to lay claim to a growing share of the nation’s wealth.1
But even high net worth women cannot escape the gender-based challenges that may hinder their ability to ensure financial security in their later years. Consider the following factors affecting women as they invest for long-term financial goals such as retirement.

 

The Gender Gap –  A Reality Check

 

Income

Women, on average, earn $0.77 for every dollar men earn–a considerable difference over the course of a lifetime.2

Employment

Women typically spend more years out of the workforce to care for family members. Studies estimate that 2 out of 3 informal caregivers are women, many of whom are middle-aged mothers with children or adult children living in their households.3 Since traditional pension plans and Social Security benefits are generally determined by years of service, leaving work for periods of time often means lower retirement benefits.

Retirement Income

The average annual pension benefit of a woman aged 65 and over is $12,137, compared with $19,557 for the average 65-year-old man.4 Furthermore, only 29.4% of women over 65 receive pension benefits at all.4

Longevity

Women tend to outlive men by about five years, and life expectancies continue to rise.5 In addition, according to U.S. Census Bureau data from 2010, women age 65 and over were three times as likely as men of the same age to be widowed (40% compared with 13%), and nearly three-quarters (73%) of women age 85 and over were widowed, compared with 35% of men.6

What does this mean to you? Simply that all women — whether single, married, divorced or widowed — should make investing for long-term financial goals a lifelong endeavor.