March is Women’s History Month, and throughout the ages women in various societies have not necessarily had the resources and wherewithal to address their particular financial needs. Today, women have more opportunities to engage in and seek advice about financial planning, but they do not always take advantage of these opportunities.
On the Forbes Fee-Only Planner blog, Eva Kaplan, CFP(R) Practitioner, recently discussed how women have different financial planning needs than men do:
“The biggest single financial challenge Americans face is lack of retirement preparedness. These issues are especially acute for women.”
Then the blog goes on to outline some of the reasons why one should not take a one-size-fits-all approach towards planning for retirement. Two key points are:
Women earn less than men. Whether it is because they take time away from the workforce to care for family or because they face gender discrimination, “women typically have 1/3 less money set aside for retirement than men.”
This means that women who earn less would need to work longer to have comparable retirement savings.
Women live longer than men. Women are also more likely to need long-term care insurance. As Kaplan notes, “A trip to any assisted living facility or nursing home will confirm that the majority of residents are women.”
Kaplan also observes that women will control more than half of the wealth in the United States in the years to come, so female financial planners with a “more intuitive” approach will be of great help.
Claire Emory MBA, CFP, CFA & Fee-Only Financial Planner is dedicated to helping people, and women especially, take care of themselves and the people they love. As more and more women are taking control of their finances by choice or by necessity, Claire’s dream and the mission of Clarity Financial Planning is to provide the guidance needed to create the future they want while protecting themselves and their families.