On average women outlive men, yet, they typically invest fewer dollars than men despite spending more years in retirement.
Continue reading to understand why this discrepancy occurs, how women should approach financial planning and why men should be equally invested in this conversation.
There are distinctive aspects of a woman’s career that affects her earning power and limits her ability to match the savings levels of her male counterparts. Some of this can be attributed to the fact that women, on average, earn less than men, but it is important to also highlight the fact that women typically take more breaks than men throughout their careers. These breaks are often related to child-rearing and/or caring for aging family members and result in long periods of decreased to zero income.
Not Just Women
Everyone, both men and women alike, faces unique challenges that can delay their ability to invest and plan for the future. Millennials are taking on unprecedented amounts of student loan debt, parents are increasingly needing to provide financial support for their adult children, and some professionals face unforeseen health issues that take them out of the workforce for a substantial amount of time. If not properly planned for, these challenges can cause serious financial setbacks and significantly impact the likelihood of achieving one’s financial goals.
A Way Out
Though it can be challenging to create a financial plan with fluctuating income, if you incorporate expected periods of decreased earnings into your financial plan from the onset, and make higher contributions during your income-earning years, breaks are less likely to negatively impact your goals. You may also consider working with a professional who could help you understand your risk tolerance and which mix of risky and conservative investments will work best for you.
To take a deeper dive into the obstacles women face when investing and some possible solutions, read the article below “Should Women Save More.”
*feature image credit: Getty Images*