When it comes to financial advice, there is a wealth of options available in the financial world. From personal financial advisers to finance-focused websites, anyone can find financial advice that applies to them and their current financial situation. However, there is a question of whether women need different financial advice than men.
In the broadest sense, receiving personalized financial advice can be more beneficial than relying on general financial advice. The financial advice that applies to a young adult working at their first job may not be good advice for someone that is planning for retirement in a few years. In the same way, women need different financial advice than men because of different factors in their lives. Here are some of the reasons why women need different financial advice.
Women Tend To Live Longer Than Men
Studies have shown that women tend to live an average of five years longer than men of the same age. This means that women have a higher risk of outliving their assets. Women need to plan on having at least five years’ worth of additional assets or plan on adjusting their spending accordingly in order to live out their senior years comfortably.
Women Often Earn Less Than Their Male Counterparts
An income gap still exists between men and women, even when they are doing the same job. According to recent studies, women make an average of 23% less than men working in the same industry and 5% less than men working in an identical job. This leads to women spending a larger percentage of their income on basic needs and saving less for their futures.
Women Seem To Save Less For Retirement At Every Age
One of the biggest issues facing Americans today is a lack of preparation for retirement. A majority of people say that they do not have enough money saved for retirement and many also saying that they do not plan to retire when they are age-eligible. For women, this issue is even more pronounced as women tend to have 1/3 less saved for retirement than their male counterparts and have lower 401(k) participation rates.
Women And Men Have Different Insurance Needs
The biggest insurance needs for most women are life insurance and long term care insurance. Life insurance is needed to cover lost income or pay for homemaking services for a spouse or children in the event of unexpected death. Long term care insurance is needed to cover the costs of living in an assisted living facility or nursing home during senior years or after outliving a spouse.
Women Need Different Financial Advice Because Our Lives Are Different
Women can benefit from personalized financial advice whether they are single or married, are a mother or childless, or are working or a homemaker. The factors that affect our lives are different at different stages of our lives. We should be as financially prepared as we can be so we are not financially devastated by a sudden change. Women need different financial advice than men and should not be insecure about seeking out the best financial advice for them.
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