April 21, 2017

Four Key Challenges That Impact Women’s Finances

Disclosure: This is a sponsored post for SheSpeaks/Prudential.

My husband and I have big plans. We want to travel and move into our dream home. We also want to live comfortably in our retirement. Sound familiar? What steps are you taking to making sure that these things are going to happen?

For some reason, women have a lower engagement when it comes to how they will make sure that financial goals are met. I talk about day-to-day life with my friends, (What did you watch on TV? Where did you buy those cute shoes? Did you hear that so-and-so moved into the neighborhood?), but we never talk about financial planning.


Unfortunately, women have 30% lower retirement balances than men.[i] Women retire with 67% of the wealth of men, and they live 5-6 years longer than men do.[ii] Furthermore, women don’t invest to the same degree as men.[iii] Women's discomfort with investing comes at a high cost for them: They are apt to delay investing, invest more in lower risk, lower return investments and are more likely to run out of money in retirement.

This is not okay! I am thankful to be teaming up with She Speaks and Prudential to bring light to the financial challenges that women face. Sometimes women don’t care for the financial services jargon and they feel time-starved and cash-strapped. So even though they take care of day-to-day budgeting, they leave out some of the important pieces of long-term financial planning such as insurance and saving for retirement.


Are you aware of the unique financial challenges women face? It is time for women to start talking about their finances so they can take control of their financial futures. There are four key challenges that are impacting women’s finances.
  1. Wage & Income Gap: Women don’t earn as much as men. The average woman working full-time earns 79% of the income earned by her male counterpart.[i] 
  2. Investment Gap: Women don’t invest to the same degree as men.[ii] Women's discomfort with investing comes at a high cost for them: They are apt to delay investing, invest more in lower risk, lower return investments and are more likely to run out of money in retirement. 
  3. Women are Living Longer and Living Alone: 
    • 5-6 years is the approximate number by which women outlive men.[iii] 
  4. Time Gap: Women may feel they do not have enough time for financial planning. On average, women in the U.S. spend 28 hours per week on household chores - 65 percent more than the average for men.[iv] 
These challenges, combined with behavioral inhibitors, mean that many women are unprepared for their financial future. The key behaviors that are holding women back are lower engagement, procrastination, impulse control and an optimism bias.


Prudential wants to help women educate themselves about these issues, so that they prepare and protect themselves. Prudential aims to empower women with financial solutions so they can be confident they are making the right decisions for themselves and their families.

Are you ready to own your future? Click here to learn more from Prudential and connect with a Prudential advisor today.

Sources

i Source: Prudential Retirement analysis reflecting defined contribution plan balances of Prudential record-kept plans as of December 31, 2015

ii Source: Prudential Retirement analysis; National Center for Health Statistics, Health, United States, 2015: With Special Feature on Racial and Ethnic Health Disparities. Hyattsville, MD. 2016

iii http://fortune.com/2016/05/11/sallie-krawcheck-ellevest-launch

iv Source: U.S. Census Bureau, Historical Income Tables Table P-40: Women’s Earnings as a Percentage of Men’s Earnings by Race and Hispanic Origin, 2016

v http://fortune.com/2016/05/11/sallie-krawcheck-ellevest-launch

vii Prudential Retirement analysis; National Center for Health Statistics, Health, United States, 2015: With Special Feature on Racial and Ethnic Health Disparities. Hyattsville, MD. 2016

viii Organisation for Economic Cooperation and Development, October 2016, http://stats.oecd.org/index.aspx?queryid=54757



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