Why Women Need Their Own Financial Accounts

Financial independence is essential for everyone. Women have lagged in gaining autonomy, being more reliant on their spouses for money than is healthy.

They have made significant progress in the workplace, and their financial clout is rising. Yet, to fully attain financial independence and greater equality,  women need their own financial accounts.

Women Need Their Own Financial Accounts As The Family Structure Changes Traditionally, couples blended their financial lives and assets and opened a joint account. However, changes in our family structure–later marriages, high divorce rates, second marriages, cohabitation, single

Women Have Distinct Financial Hurdles To Overcome

1. Gender Gaps Persist Women are paid 82% less than men, according to a 2017 Pew Research Center study. According to a UBS study, the cumulative effect of starting at a lower base at age 25, with raises on that smaller amount, will provide 38% less wealth for women by the time she reaches 85. Of course, women may not receive the same raises or bonuses as men adding to this gap.

2. Retirement Savings Will Be Less These amounts may be a conservative amount. A Merrill Lynch study with Age Wave has shown that with the multiple impacts of lower earnings, parenting, caregiving, and reduced retirement savings opportunities, women will collect $1,055,000 less than men by their retirement age.

3. Lower Earnings Impact Social Security Monthly Benefits Average social security monthly benefits for retired workers were $1,422  in 2018, with women receiving $1,049 versus $1,382 for men. Across all employer retirement plans, men have higher average account balances, which gap grows wider with age.

4. Women Hold More Debt And Lower Credit Scores Women earn 57% of the bachelor’s degrees in US colleges and universities. They have more degrees in every higher education category, including doctorates, than men. However, this is not translating into higher earnings for women.

Swipe Up to Read More about  Why Women Need Their Own Financial Accounts