This is a sponsored post for SheSpeaks/Prudential.
I am not going to sugar coat it, there are many times that life just doesn’t go as planned and sometimes it just isn’t fair! I have to say it seems like sometimes us women and moms get the short end of the stick.
I would never have imagined myself a single mom at the age of 20 or again at the age of 31, going through bankruptcy at 24, buying a house at 27, and back to renting with debt at 31. Life is always changing and, as a result, so does the financial situation of our lives.
I know, like many other women, I am not alone.I put aside my career and working outside the home to be a stay at home mom. While I don’t regret it, there have been effects on my financial future and something that I am now working hard to overcome. I have no retirement plan and there is not much in savings. Right now, there is just me working towards the future for the kids and me.
While it may feel like it is in our heads that we have to work even harder at our financial goals and dreams, there are facts out there that prove even with hard work and determination women are still facing some pretty big gaps to overcome in our financial lives!!
The Wage and Income Gap- Did you know that the average woman working full-time earns 79% of the income earned by her male counterpart?1
This is because of many issues. Women are less likely to negotiate salaries, they have time out of the workforce, and of course differences in pay. The wage gap also impacts women’s 401K balances over their lifetime and their social security payments. Predictably women’s social security benefits are 27% lower than that of their male counterparts.2
The Investment Gap- Women don’t invest to the same degree as men.3 Women’s discomfort with investing comes at a high cost for them: They are apt to delay investing, invest more in lower risk, lower return investments and are more likely to run out of money in retirement.
Women Are Living Longer and Living Alone- Women outlive men by an average of 5-6 years and tend not to be prepared for those years alone.4
Time Gap- On average, women in the U.S. spend 28 hours per week on household chores – 65 percent more than the average than men.5
These chores are uncompensated work and it does not figure into women’s financial planning. Prudential has created a tool called the “Value of all you do” that let’s you very quickly quantify the value of all the household chores you do on a daily basis. What you would need to pay someone to do those for you.
I appreciate that Prudential has made me aware of these important gaps and wants to help. I love that Prudential believes that women should AND can take control of their finances. After reading these facts you are probably sitting here saying the same thing as me: What can I do to overcome these gaps?? You can get started by reaching out -> here to a Prudential representative to get started!!!
What steps are you making to improve your financial security?
- Source: U.S. Census Bureau, Historical Income Tables Table P-40: Women’s Earnings as a Percentage of Men’s Earnings by Race and Hispanic Origin, 2016
- Source: Social Security Administration, Fast Facts and Figures About Social Security, 2016
- Source: http://fortune.com/2016/05/11/sallie-krawcheck-ellevest-launch;
- Source: Prudential Retirement analysis; National Center for Health Statistics, Health, United States, 2015: With Special Feature on Racial and Ethnic Health Disparities. Hyattsville, MD. 2016
- Source: Organisation for Economic Cooperation and Development, October 2016, http://stats.oecd.org/index.aspx?queryid=54757