Although they often become solely responsible for their financial wellbeing,
In general, women today are living longer than ever and continue to outlive men. In addition to the money they earn, women may also receive a large inheritance. It’s estimated that women in Canada will inherit $900 billion in assets by 2026. 1
Whether they are single, married, divorced or widowed, women should be encouraged to take more control of their finances – and it needs to happen now.
Let’s consider a few stats to gain more context:
In the midst of Canada’s largest intergenerational wealth transfer in history, and with longer lifespans and the need to plan for an extended retirement and greater health care expenses, women face pressure to manage their wealth effectively.
Of course, achieving financial independence is important for anyone, but as the stats above illustrate, it’s especially crucial for women as they are typically starting from a disadvantaged position. Often under the belief that investing and financial planning are too complex and being financially prepared requires significant expertise and time commitment,
That’s why the spotlight on women and their wealth is brighter than ever.
This is includes:
Learning how to manage wealth can be overwhelming, particularly for women who are primarily focused on taking care of their family and have delegated most money matters to their partner. Roughly 74% of men say they are the lead financial and investment decision-makers in their household, but 90% of women will have that role thrust upon them later in life, often as a result of divorce or widowhood. 1 That’s the troubling disconnect we must address.
While the financial planning process may be complicated at times, it’s nothing you can’t handle and eventually master. Begin with the two action steps below:
1. Empower yourself with financial literacy
Learning more about investing, budgeting and overall financial planning will help form the building blocks you need to gain confidence in your financial management abilities. You should also take charge of your specific situation.
If you have a partner, the goal should be full financial transparency so you can get an accurate picture of your household finances. Only when you fully understand your assets and liabilities can you determine what gaps may exist in your financial plan, and how to address them.
2. Benefit from financial advice
It’s critical to work with an advisor who understands your unique financial needs, objectives and challenges. An advisor gains deep insights into the complexities of your life and will create a personalized plan with strategies and solutions to help you achieve financial success – however you choose to define success. Significant life events like divorce or widowhood can have an immense impact on your financial wellbeing. Working with an advisor,
and be confident that your comprehensive financial plan will sustain you now and in the future.
An Advisor can help you build your financial confidence and gain more insight into your finances.
1 Women & Wealth: Financial confidence comes with finding the right advice, IPC Private Wealth, 2018.
2 Own your worth: How women can break the cycle of abdication and take control of their wealth, UBS, 2018.
Investment Planning Counsel