The 100th anniversary of women’s right to vote in the U.S. occurred in 2020. During the last century, women have made great strides in educational achievement and career opportunities. Despite this progress, they continue to be at greater risk than men of not achieving a financially secure retirement.
Today, a woman’s path to secure retirement is filled with obstacles, such as lower pay and time out of the workforce for parenting or caregiving, which can negatively impact her long-term financial situation. No matter their race, age, occupation, or education, women are negatively impacted by the gender wage gap. One of the most cited statistics comes from the 2016 U.S. Census Bureau report that shows women earn 79 cents for each dollar men earn in the U.S. Further, the report highlights the negative effects race plays on a women’s income. Compared to white men, Black and Hispanic women are paid only 65 cents and 58 cents on the dollar, respectively.
Statistically, women also tend to live longer than men, which creates an even greater need to plan and save. In short, for women, many factors influence financial wellness spanning the social and economic spectrum—factors that often undercut their security later in life. These life events can place extreme pressure on retirement resources.
The Financial Industry is Getting a ‘Wake-Up Call’ About Women and Money
When you search the word “investor” in Google Images, you are instantly overwhelmed by photos of men in suits and ties, gazing seriously at stock charts, pointing at computer screens together, and even holding stacks of money. When women are included in these images, they are usually standing behind their male counterparts, appearing to gently offer emotional support. The message these images convey is loud and clear: the world generally considers men to be the more skilled and knowledgeable gender when it comes to investing.
