Women's History Month is here. Let's talk women & wealth: part 1
March 1, 2024 – March is Women's History Month and welcome to our first installment of the All The Wealth newsletter. In honor of Women's History Month, we start with a special series on the wealth needs of different groups of women.
The Transamerica Center for Retirement survey reveals that “more than half of women workers, or 57 percent, feel they don’t have enough income to save for retirement and only 19 percent are “very confident” that they will be able to fully retire with a comfortable lifestyle.
Women earn “an average of 82 percent of what men earn,” according to the Pew Research Center. The Center for American Progress reports “a woman may lose $400,000 to $1.2 million due to the gender pay gap. During the course of a 40-year career, Black women lose an estimated $964,400 to the wage gap, Native American women lose $986,240, Hispanic women lose $1,163,920, and AAPI women lose $400,000.”
Here are some other concerning trends to keep in mind.
“About 50 percent of women ages 55 to 66 have no personal retirement account, compared to 47 percent of men.” (Source: U.S. Census Bureau’s Survey of Income and Program Participation)
“11.6 percent of women aged 65 or more years live in poverty, compared with 8.8 percent of older men. The rate is approximately 20 percent for older Hispanic and Black women and about 14 percent for older Asian women.” (Source: Women’s Bureau of the Department of Labor)
“Thirty-five percent of women are or have been caregivers during their working careers, and most caregivers (83 percent) made work adjustments because of caregiving such as missing work (36 percent). (Source: Transamerica Institute)
Research also shows “women tend to live longer than men. This difference amounted to a five year gap in global life expectancy: the average life expectancy is 73.8 for women vs. 68.4 for men.” (Source: Our World in Data) With the longer life expectancy and gender pay gap, women are not prepared financially for retirement.
We asked our team to weigh in on how can help more women succeed financially.
“We want women to be confident and in charge of their financial wellbeing.,” says Mical Jeanlys - White, our chief executive officer and founder. “At an early age, I learned the importance of being financially smart from my mother. She was a stay at home mom who later became a financially independent working woman.”
“First, build an emergency fund to cover unexpected unemployment and career breaks. Then start and continue to make retirement savings contributions, even if they are small contributions,” says Tanya Frias, our head of wealth and CERTIFIED FINANCIAL PLANNER™ professionals.
To help women live comfortably during retirement, we encourage women to start investing early and build comfortable investments over time. Small contributions can become a major nest egg with time. Also, delay your retirement to increase your retirement savings and Social Security benefits as long as your health and circumstances permit you to work longer.
Other retirement savings tips to consider . . .
Take Advantage of Employer Sponsored Plans - Participate and contribute regularly to company sponsored 401 (k) or similar retirement plans. Take advantage of the employer matching program to boost your retirement savings.
Maximize IRA and Roth IRAs Retirement Accounts – Contribute the maximum allowable amount to retirement accounts such IRAs or Roth IRAs each year. These accounts offer tax advantages and can boost your retirement savings.
Consider Health Care Costs: Factor in potential healthcare expenses in retirement. Medicare may not cover all your needs, so plan for additional health insurance or medical savings.
Plan For Childcare Costs: Budget for childcare expenses and explore options such as flexible work arrangements or employer-provided childcare benefits.
Consider Long-Term Care Insurance: Explore long-term care insurance options to protect your retirement savings from potential healthcare expenses.
In addition, we recommend women take continuing education courses to stay current in your field, join professional networks for career opportunities, and seek a mentor to advance your career. Research the fair market value for your job description and negotiate your salary. These activities can help reduce the pay gap which directly contributes to our wealth gap.
Wealth and health go hand in hand. “Maintain a healthy lifestyle to reduce the risk of chronic health issues that could lead to costly long-term care needs,” says Tanya Frias, our head of wealth and CERTIFIED FINANCIAL PLANNER™ professionals.
And don't forget, our financial app has communities such as (womenwhowealth, blkwomenwealth) led by our wealth advisors (CFP® professionals or experienced investment advisors) to help you with real-time advice about investing, retirement, college planning, home buying, insurance, estate planning, and taxes.
WealthMore only requires an initial investment of $5,000 to start individuals on a journey to financial security and freedom. WealthMore offers three plans – Invest+, Premium Advice, and Premium Advice+ – to help individuals on their financial journey.
Contact WealthMore’s wealth advisors to get the wealth advice you deserve to help you do better.
# # #
About WealthMore
WealthMore is a premium, wealth advisor led, tech-enabled investing and financial planning service and community without the barriers to entry. WealthMore offers a diverse team of CERTIFIED FINANCIAL PLANNER™ professionals or equivalent to make investing and building generational wealth inclusive to the many that have been left out and overlooked by financial advisors. Expert financial advice from individuals who see and get you is essential to creating a more prosperous financial future.
WealthMore’s Founder Mical Jeanlys-White, a former JPMorgan Chase & Co. executive, has made it her mission to make investing and financial planning affordable for everyone, especially overlooked groups. Mrs. Jeanlys - White brings more than 20 years of experience in the financial services industry having held senior positions at JPMorgan Chase and American Express to this new venture.
WealthMore is headquartered in Philadelphia and serves all US based residents over the age of 18.