Celebrating Women
This Monday, March 8th is International Women’s Day; a day that celebrates the social, economic, cultural, and political achievements of women and girls, and raising awareness of the work left to be done.
The first International Women’s Day occurred in 1911. The day is not a country, group, or specific organization. International Women’s Day belongs to all of us collectively around the world, who care about human rights.
Do we still need an International Women’s Day?
Absolutely! According to the World Economic forum, sadly we will not see gender parity in our lifetimes, nor will many of our children. Gender equality will not be attained for almost another century.
The Economic Challenges Women Face.
Full time working women make 30% less money than their male equivalents. As a result, a woman would have to work 14 years longer than a man in the same job to reach the same pay grade. Considering most Defined Benefit Pension plans average the last five years of income to determine retirement benefits; this means that if her male counterpart retired at age 65, she would have to work until age 79 to retire with the same pension income.
In addition, women must face some sobering economic realities when planning their retirement. Women live on average 3 years longer than men, and those that live to age 65 can anticipate living another 20.8 years. The average age of widowhood for women is 56, while 83% of one-parent families are headed by women.
Some Positive Change.
Research estimates by 2028 women will control 75% of all global discretionary spending. 64% of Canadian women make all or most of the household’s investment decisions. Currently, women outnumber men in masters and doctoral programs by 60% and 50% of all new businesses in Canada are led by women.
Women see financial success differently than men; a woman considers financial success as:
*Being able to deal with unexpected emergencies.
*Paying bills on time.
*Being debt free.
*Have enough money saved for a comfortable retirement.
*Being able to afford to purchase whatever they want beyond the necessities.
When it comes to investing, men and women ask very different questions:
A man wants to know:
What vehicles can he use to generate the best return on his money so there will be enough money to retire when he wants?
What are the numbers? How much does he need to save, where does he put that money and how much does that money need to grow between now and retirement?
A woman wants to know:
What happens if the stock market crashes?
What if she needs to tap into the money in case she loses her job?
What if she doesn’t save enough by the time she wants to retire?
What guarantees does the plan come with?
This International Women’s Day take the time to recognize the women who inspire you; renew the discussion about the importance of gender equality in Canada and around the world.
Have a great week,
Tracey
Sources: BNN interview with Pay Equity Coalition member 03-07-18, TD Asset Management Selling Financial Services to Women by Holly Buchanan, Fidelity Investments, Invested, International Women’s Day website, Status of Women Canada.ca, Dynamic funds MT 2018-07-01
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