By Craig Erwin, Ph.D.
Women tend to avoid thinking about and making decisions about their financial future. And that is very dangerous!
Although men have long had myriad advantages, women have gained ground on men in some ways; they just can’t close the gap in some key areas. Although on average women have higher academic achievement than men, it doesn’t pay off as you would expect. To earn as much as male colleagues, women need to earn an extra degree.
Women control over half of the personal wealth in America, but they often want little to do with financial decision making and most are unwilling to take charge of big financial decisions regardless of their age, education, or income.
UBS Global Wealth Management surveyed women and found that 50% of married women and 54% of married millennial women reported that they let their husbands make the decisions on long-term financial matters.
The data convincingly show that most women avoid dealing with personal financial matters and decisions as much as possible, just as they always have. Why? Either they just aren’t interested, they don’t feel a sense of urgency, or they just don’t think bad things are ever likely to happen (so why plan for them?), according to Valerie Newell of Mariner Wealth Advisers.
Paula Polito at UBS Global Wealth Management believes that women are concerned about money, just not about the long term or the big picture. Their financial interests are short-term in nature, rather than being focused on retirement, life insurance, or their estate. This is troubling because long-term financial decisions tend to be more important for women than for men. Women are at a disadvantage in numerous ways. For example, on average, women live longer, make less money, accumulate less wealth, are more likely to retire in poverty, and have higher medical expenses in their later years.
It’s troubling that women are less interested and concerned than men with important long-term financial decisions, especially when women tend to face more financial challenges than men and are doomed to be hurt badly by their disinterest and neglect.
So, dare to be different. Take the bull by the horns and take charge of your financial future. Make a detailed plan (with professional help, if you can get it) and execute it. Do it now!
See the following articles to learn about the financial disadvantages women face. https://womenretire.com/building-wealth-is-harder-for-women-than-men/
Watch the video below to learn about how to prepare for a comfortable retirement.