How do these impact women's wealth?
Women’s distinct challenges arise from life expectancies that are longer than men’s, lower lifetime income than men, and career interruptions due to child rearing. As women are likely to spend at least part of their retirement in widowhood, they have different savings needs than men. Moreover, women are much less likely to plan and, thus, less likely to be prepared for their retirement than men. Further, lower financial skills combined with fewer available resources gravely impacts women’s wealth.
Many women defer long-term financial decisions to spouses because they believe men know more about investing and planning
Many women learn the costs of deferring when marriages end. Few women realise the consequences of deferring until after a divorce or the death of a spouse. Some widows and divorcees were disappointed to discover hidden debt and inadequate savings that compromised their lifestyle.
Failing to plan for the future carries risk. As women around the world live longer, the likelihood of becoming widowed or divorced increases. Inevitably, women who plan for these possibilities will be better prepared. Women do not need to do it alone. In fact, women who approach long-term decisions in partnership with their spouses’ report soaring levels of satisfaction. According to UBS survey, nearly all have high confidence in the future, feel less anxious about money and make fewer financial mistakes.
By sharing decisions jointly, both women and men can face the future with optimism and set an example of financial partnership for generations to come. Women need to take more active role in this joint decision to be aware of what is going on with their wealth building portfolios. They will feel more prepared to manage their finances if something happens to their spouse.
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