Post COVID Economic Realities for Women And Their Estate Planning Needs
Equal Pay, Equal Rights, Equal Wealth
Economic and estate planning realities for women:
(1). The median annual salary for men is around $50,000. At 82¢ for every $1 earned by a man, the median annual salary for women is around $40,000.
(2) For someone taking care of a family, how significant do you think that extra $10,000 would be? By the time a woman reaches age 65, she will have earned $1 million less than a man who stayed continuously in the work force. (3) Consequently, retired women receive only 80% of what retired men receive in Social Security benefits. (4) Women tend to be the primary caregivers for their children, parents and partners.(1) So women end up taking time away from their careers to care for loved ones. These career interruptions can significantly impact women’s chances to climb the corporate ladder – promotions, raises, bonuses and full retirement benefits. Since women earn less, we have less money to set aside for our financial goals. Of the Americans who live paycheck to paycheck, is it a surprise that 85% are women? (5) As a result, women own just 32¢ for every $1 owned by men. We accumulate only a third of the wealth accumulated by men.
All this, was true before COVID-19.
(6) Women have been severely affected by job losses due to the pandemic. More than 2.5 million women left the labor force between February 2020 and January of this year, compared to 1.8 million men.
(7) A recent study found the impact of COVID-19 on women will worsen inequality. It is said to have already extended the timeline to reach gender equality by 51 years — from 2120 to 2171. Here's what we can do about it: "We may not see the gender pay gap or the gender wealth gap close in our generation. But women can change the financial trajectory of their lives by learning how money works and applying the 7 Money Milestones. By understanding and paying attention to all of the things that make up our financial picture – Financial Education, Proper Protection, Emergency Fund, Debt Management, Cash Flow, Build Wealth, and Protect Wealth, we have the power to take control over our financial future and create equal wealth for ourselves. We should consider choosing a career that pays more to women and men equally. With a company that doesn’t penalize women for time spent taking care of loved ones. A place where women can create equal pay for ourselves. Women have made a lot of progress in pursuing higher education and professional careers, but we’ve only made incremental progress in our finances. If we want to bring about profound change, we have to make it happen for ourselves. We have the power to close the gap in our lives for ourselves and our families." — Kim Scouller, No Woman Left Behind Conference Panelist