Financial Inequities for Women and Financial Planning

Women are faced with financial challenges. If you were to guess that question worry about most women, do you know the family, health, time, stress, or even equal rights? According to a survey in March 2000 gallop, the answer is their finances. This answer may surprise you now, but consider the following list of financial issues specific to women.

Consider these results of a woman and money incubator, and research by Bruce W. Most and William L. Anthes:
– “Women are more intimidated than men on financial matters
-Women earn less money than men
– women are less well prepared for retirement
-Women receive retirement benefits smaller
-Women live longer than men
-Women are more poor as men at retirement
-Women are more conservative investors than men “

We would also like to add
– Difficulties special provisions for single mothers
-Women caring for elderly parents
High-deductible health insurance plans cost more women
-Women may defer to men with regard to financial decisions
-More women manage family finances daily
-Retirement due to divorce agreements
– Dominées by men of the financial services sector

Profit Differences
It is a well-documented fact that women earn less than men. A study by the American Association of University Women Educational Foundation reported by Ellen Simon AP (): “Women make up only 80 percent of the wages of their male counterparts to a year after the university .. . 10 years after college, women earn only 69 percent of what men earn . Even after taking into account the hours, the occupation, parenthood, and other factors known to affect earnings, “the study found that a quarter of the gap pay remains unexplained.

Most and Anthes report that “According to the US Department of Labor, women working full time, year-round, earn about 74 percent of the low incomes men . (And) employees in the age group of 45-54-the first Gain years for most people, women earn $ 516 a week, while men earned $ 732. “It gets even worse for single mothers with young children whose” median income in 1998 . Was $ 14248. This figure is the lowest among all types of families, which represents about one quarter of the median income of married-couples with children and . About three-fifths that of females without children. “

Retirement Differences
Women are often less prepared for retirement than men. Most Anthes and also noted that a study found 58 percent of baby boomer women had saved less than $ 10000 in a pension or 401 (k) plan, while baby boom the men had saved three times that. In addition, the fact that women live longer than men means that they need more money in their retirement than men.

Differences investment
In addition, a 1997 study Dryfus and the National Center for Women and Retirement Research women showed that investors are more worried than men about running out of money in retirement, investment preferred more conservative, wanted fixed / returns regularly were more unnerved by stock fluctuations and worried more about the decisions of investment.

Differences in social security pension
Of course, less money earned by women, means less money for retirement or contributed to social security benefits, and because women live 79 years on average, while men live 72, pensioners, women are poorer than men in retirement. Most Anthes and noted that according to the Administration on Aging “. Half of older widows who now live in poverty were not living in poverty before their husbands died. The situation is worse for older women in many minority groups. ”

Decision Making
The next generation of retirees could have been raised in an environment where men handled the money decisions. More women actually pay the bills weekly, but they are not necessarily the largest family finances, such as pension plans, social security, IRAs, insurance, annuities, etc., as they can they return to their joint decisions.

It is important for women to understand the “big picture” of their finances, particularly for retirement, divorce or the death of their spouses. Because women earn less than men, are less well prepared for retirement and receive retirement benefits smaller, they must ensure that their husband's retirement will pass to them if their husband dies first. Because women may be more intimidated to ask questions about their lawyer or financial adviser, they may be missing crucial details (like single life annuity, which can lead to higher levels during the life of her husband, but who finished when the husband dies first), beneficiaries or incorrect on life insurance policies.

Divorce
during divorce, a woman may be more concerned about the issues of custody and maintenance of the nursing home and their future may agree to waive the 401 (k). Single parenting provides a range of financial challenges, including lost wages between parenting and childcare and guardian. If additional costs, and possibly low income are not included in the divorce settlement, the single mother no doubt that it is unable to keep the house and she loses both assets most valuable: the house and the 401 (k).

Health Insurance
Not only do women earn less money than men, their health plan may cost more reports Mike Stobbe AP (). When an employer changes to a high-deductible plan, it costs an average of $ 1000/year more for women than for men because of mammograms, the vaccine against cancer of the cervix, the test Pap and pregnancy related services. It is unjust, but while the inequalities exist, women have to make an extra effort to contribute to the difference in the health savings account or savings program to avoid d & # 39; use of funds to pay the medical bills added. We have personally experienced the $ 4000 deductible per year and the health insurance plan, but it is better than no insurance, it can certainly make a dent in the family budget.

provide care
Another huge drain on the finances of the woman is caring for their elderly parents. More women for the care of elderly parents than men. However, it may be unpleasant to condense a daughter's love for his parents in a discussion of money, this should be addressed so that women can prepare. Due to the aging population of baby boomers, these figures will soon become enormous. If you add care for young children in the mix at the same time, the financial results can be devastating.

What must women?
Because of the special problems facing women, it is crucial that women to learn about finance and financial realities of gender inequality and plan for their future. The male domination of the financial services sector is just beginning to realize the financial planning issues unique to women. Make sure your trust advisors understand these issues and help them to plan accordingly. Do not be afraid to ask your advisers questions.

Summary The time has come to begin planning for the future:
-Have a plan
– Increase your knowledge and understanding financial matters
confidence-Using professional advisers to implement projects
-Monitor your progress.

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