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Financial Planning More Difficult for Women

Financial Planning More Difficult for Women

September 5, 2021

Financial planning for women must account for gender inequality, writes Peter Watson.

Women face financial obstacles to being financially secure.

In a perfect world there would be no difference to the financial challenge between men and women. That is not the case.

Women are more often underpaid when compared to equally qualified men. Earning less money translates into a reduced ability to save for the future.

Childbearing is the sole domain of women but also, they are more likely to remain out of the workforce if the family decision is for one parent to stay at home with young children.

If there is a family crisis, for example, an elder parent needing greater family assistance, it is more often the woman that assumes that responsibility.

COVID-19 was a perfect example of women being at a disadvantage. People started working from home, children were not at school, plus, depending on their age, they needed assistance to do online learning.

For the majority of families, if one person was forced to leave their employment because of the new pandemic reality, it was most often the woman.

Women taking time out of the workforce miss earning an income. Also, they fall behind men in gaining valuable work experience. That could prove to be detrimental.

Added to the risk of running out of money prematurely, women typically live longer than men. If a family runs out of money partway through retirement, there is a strong chance it will be the widower that lives her final years with insufficient funds.

Often the man is older. If he has medical or other special needs later in life, there is a chance those costs could greatly deplete family resources.

Again, the financial risk falls on the woman.

Financial planning is customized to the circumstances of each client.

We recommend you consider the financial risk that is more applicable to women.

Peter Watson is registered with Aligned Capital Partners Inc. (ACPI) to provide investment advice. Investment products are provided by ACPI. ACPI is a member of the Investment Industry Regulatory Organization of Canada. The opinions expressed are those of the author and not necessarily those of ACPI. Peter Watson provides wealth management services through Watson Investments.