Helping you ensure your wealth, values, and legacy live on
For various reasons, the state of women investors and financial security often depends on their marital status. A study from the U.S. Government Accountability Office says that women’s household income dropped by 41 percent after divorce, nearly double the size of the decline men experienced. In 2020, women earned just 82.3 cents on the dollar compared with men, according to the Department of Labor’s Bureau of Labor Statistics, a gap that was more pronounced for women of color. And women earn less than their male counterparts in nearly every occupation. Whether you are newly divorced, widowed, or a single woman by choice, the following tips could help you shore up your financial security.
WHAT STEPS CAN SINGLE WOMEN TAKE?
Be involved in your finances.
A Stanford Center on Longevity study found that women tend to be as confident as men in making routine financial decisions but much less confident—and usually less involved in—making major financial decisions such as saving for retirement or investing.
Negotiate Life Changes
In many cases, a woman going through a divorce or the loss of a spouse may not be aware of their family’s full financial situation. If you are currently married, you should be actively involved in major financial decisions and have access to all financial records.
Plan ahead at work.
When you have confidence in your financial status—if you have a strong financial plan in place and you’ve built up savings and emergency funds—you may be more confident asking for what you deserve at salary review time.
Back up your claims for a raise.
Support your proposal by documenting any significant accomplishments you’ve made over the past year, particularly ways you’ve contributed to your company’s financial success.
TIPS FOR NEW DIVORCÉES AND WIDOWS
For retirement benefits, you need at least a 10-year work history to qualify for your own Social Security benefits. To maximize these benefits, you may want to delay when you start collecting until age 70, depending on your life expectancy.
In addition to understanding your own retirement benefits, you should know about any spousal benefits you may be entitled to. If the marriage lasted for at least 10 years and you haven’t remarried, you could be eligible for half of your ex-spouse’s social security benefit amount at their full retirement age, even if they’re not actively collecting it. The total amount you are owed and when you should start collecting will depend on your age, personal earnings, life expectancy, and whether you remarry.
TIPS FOR WOMEN WHO ARE SINGLE BY CHOICE
If you don’t have a spouse or a child, an estate plan can help ensure that your wealth is effectively distributed. Generally, this means that assets would go to a parent or sibling if there’s no surviving spouse or child and more remote family members if there are no surviving parents or siblings. If you have a large extended family, you may prefer that your wealth go to nieces, nephews, and charities.
TAKING CHARGE
Whether it’s by necessity because of a life change or you just want to become more involved in your finances, women investors can take charge of their financial security by staying fully informed of options—and the many considerations that go into solidifying your current financial situation, maximizing retirement benefits, and properly planning your estate.
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer. Third-party links are provided to you as a courtesy and are for informational purposes only. We make no representation as to the completeness or accuracy of information provided at these websites.
Look for additional articles specific to women investors.Check out our guide to retirement planning at any age. We’re happy to discuss your particular retirement planning needs with you. at the bottom of this frame.
