Women and Finances
Here are some worrisome facts if you are female: Women are twice as likely as men to live below the poverty line during retirement. This is especially true for single and minority women. And women continue to make less during their working years than men. The good news is that despite the unique challenges women face when it comes to saving and planning for retirement, women continue to outperform men when it comes to investing.
This partner packet provides information and resources to help women set themselves up for success despite the challenges they may face. Please share the article, social media content, graphics, and resources provided with your constituents, your partners, and the general public.
In This Packet:
Article (Short-Form and Long-Form)
Social Media Post and Graphics
Article
For use in communications that directly reach your constituents.
There's a great deal of information available on women and personal savings, particularly in recent research. For this partner packet, we have made two articles available. The first is a short-form article featuring savings tips for women, and the second is a long-form article taking a deeper dive into the challenges women face with steps that can be taken to help women gain a strong financial footing.
As always, we encourage you to use the contents of either post as a guest post, or rewrite them as your own.
Minding the gap: A practice in financial feminism
America Saves, a national campaign that promotes savings, notes significant differences in savings between men and women. A 2014 survey showed that women displayed a greater interest in savings, but there was no greater savings effort or savings effectiveness compared to men. But just two years later in the same survey, the gender gap leapt off the page. Woman were notably behind across 12 important financial indicators including consumer debt, savings habits, emergency savings, and general savings progress.
As concerns continue to rise over American's often inadequate retirement and emergency savings, it's become clear that the gender disparity can no longer be pushed aside. 2017 has already been dubbed the year of "financial feminism," and the momentum behind understanding and dismantling the financial gender gap has been picking up speed in headlines.
The fight to close this financial gender gap is a marathon, not a sprint, and there's still a great deal of work to be done. The challenges women face are not going to disappear anytime soon, but the financial choices women make in their circumstances can help to shift the tide.
Here are three actions women can take today to better set themselves up for long-term success:
1. Identify your savings goals: Women are outperforming men in the stock market, but the impetus behind their success isn't solely to make money. Successful female investors are successful because they've established long-term goals and savings targets. This practice is by no means limited to investing. In fact, savers with a plan are twice as likely to save successfully for things like retirement.
Think about what motivates you to save, and create concrete and realistic savings goals around that motivation.
2. Prioritize retirement savings: Enroll in any retirement options offered at your workplace and start making contributions as early and as often as possible. If your employer offers a match and you're not taking advantage of it, you are leaving money on the table.
If your employer doesn't offer a retirement plan, or a plan that works well for you, you can save for retirement by putting money in an individual retirement account (or IRA). Compound interest will maximize your savings over time, helping to make retirement comfortable and ultimately combat the expenses of that longer lifespan. Learn more about IRAs and the different types here.
3. Ask for help: Don't miss out on opportunities to dig yourself out of a financial hole or enhance your financial literacy because of shame or unfamiliarity. Whether you are up to your ears in high-interest debt, tackling retirement savings, getting a divorce, or expanding your family, there are local and national resources, like the Women's Institute for a Secure Retirement (WISER) or the Wisconsin Women's Business Initiative Corporation (WWBIC), available to help educate and support you on your unique financial journey. Not sure if you're In debt trouble? Find out by answering these four simple questions.
Tammy G. Bruzon works for America Saves, managed by the nonprofit Consumer Federation of America (CFA), which seeks to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. Learn more at AmericaSaves.org.
Minding the gap: A practice in financial feminism
America Saves, a national campaign that promotes savings, notes significant differences in savings between men and women. A 2014 survey showed that women displayed a greater interest in savings, but there was no greater savings effort or savings effectiveness compared to men. But just two years later in the same survey, the gender gap leapt off the page. Woman were notably behind across 12 important financial indicators including consumer debt, savings habits, emergency savings, and general savings progress.
As concerns continue to rise over American's often inadequate retirement and emergency savings, its become clear that the gender disparity can no longer be pushed aside. 2017 has already been dubbed the year of "financial feminism," and the momentum behind understanding and dismantling the financial gender gap has been picking up speed in headlines.
The fight to close this financial gender gap is a marathon, not a sprint, and there's still a great deal of work to be done. The challenges women face are not going to disappear anytime soon, but the financial choices women make in their circumstances can help to shift the tide.
Challenges Women Face
Women have made great strides both socially and economically, but often the unique challenges they face are overlooked or marginalized:
1. Women are more likely to put family finances first. In a 2015 Fidelity survey, 72 percent of women were confident in their ability to manage and balance the family budget, but less than 40 percent said the same about planning for retirement.
2. Women live longer. Women are expected to outlive men by nearly five years on average. The Urban Institute estimated that over the next 50 years, about half of women will live for at least a decade past their spouse after age 65. The reality is that these extended years can be the most expensive due to medical and long-term care expenses.
3. Women face earning-power challenges. While it's true that women are making fewer cents on the dollar than their male counterparts, the issue here is far more complex than that:
- 25 percent of working women in America are in one of 22 fast-growing jobs that pay less than $15 and are female-dominated. Despite these jobs being crucial to our economic future, the gender segregation of these jobs, as well as their low pay, puts women at a distinct disadvantage.
- Half of working women have taken a leave from to care for family. Whether it's maternity leave or a daughter stepping away to care for an elderly parent, the departure often hinders earning potential, creates gaps in retirement savings, and reduces Social Security benefits.
- Moms are also more likely to downshift in their careers in the interest of a work-family balance, making it harder to advance in their jobs. Compounded with differences in pay plateaus, this often means that women won't see equal growth in their salaries over time.
- Women face scrutiny when it comes to negotiation. Sometimes this scrutiny is a self-imposed fear of being less than 100 percent qualified for a position, but often it is the way in which women are treated that deters them from negotiating into a better job with a higher salary.
The challenges only become more nuanced when you factor in major life events like education, children, and divorce. Although the financial landscape is getting brighter, the impact on women's finances has been catastrophic, with women being 35 percent more likely to live in poverty than men.
Taking action in this year of financial feminism
The fight to close the financial gender gap is a marathon, not a sprint, and there's a great deal of work to be done. The challenges women face are not going to disappear anytime soon, but the financial choices women make in their circumstances can help to shift the tide. Here are a few actions women can take to set themselves up for long-term success:
1. Identify your savings goals: Women are outperforming men in the stock market, but the impetus behind their success isn't solely to make money. Successful female investors are successful because they've established long-term goals and savings targets. This practice is by no means limited to investing. In fact, savers with a plan are twice as likely to save successfully for things like retirement.
Think about what motivates you to save, and create concrete and realistic savings goals around that motivation.
2. Prioritize retirement savings: Enroll in any retirement options offered at your workplace and start making contributions as early and as often as possible. If your employer offers a match and you're not taking advantage of it, you are leaving money on the table.
If your employer doesn't offer a retirement plan, or a plan that works well for you, you can save for retirement by putting money in an individual retirement account (or IRA). Compound interest will maximize your savings over time, helping to make retirement comfortable and ultimately combat the expenses of that longer lifespan. Learn more about IRAs and the different types here.
3. Ask for help: Don't miss out on opportunities to dig yourself out of a financial hole or enhance your financial literacy because of shame or unfamiliarity. Whether you are up to your ears in high-interest debt, tackling retirement savings, getting a divorce, or expanding your family, there are local and national resources, like the Women's Institute for a Secure Retirement (WISER) or the Wisconsin Women's Business Initiative Corporation (WWBIC), available to help educate and support you on your unique financial journey.
Not sure if you're in debt trouble? Find out by answering these four simple questions.
Tammy G. Bruzon works for America Saves, managed by the nonprofit Consumer Federation of America (CFA), which seeks to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. Learn more at AmericaSaves.org.
Social Media Posts
Share the following messages and graphics with your followers. (Right click on image to save and use).
#SavingsTipTuesday
Start saving as soon as possible and put small amounts aside when you're young: http://bit.ly/2rXn2Ov via @kiplinger #SavingsTipTuesday
Tweet this now
Build an emergency fund so that you are prepared for the unexpected: http://bit.ly/2rjCNxC h/t @AmericaSaves #SavingsTipTuesday Tweet this now
Worry less about losing money to your savings, and more about running out of money in retirement: http://bit.ly/2ofcCaK #SavingsTipTuesday Tweet this now
Don't let shame dig you deeper into the red. Seek help & accountability: http://bit.ly/2o9IddK via @WomensHealthMag #SavingsTipTuesday Tweet this now
Identify your savings goals and then make a plan to achieve them: http://bit.ly/2qUjegN via @AmericaSaves #SavingsTipTuesday Tweet this now
#SavingsFactFriday
77% of investors made $ in 2016, and women outperformed men for 3rd year in a row: https://cnnmon.ie/2oiLEMm v/ @CNNMoney #SavingsFactFriday Tweet this now
Women work nearly 2/3 of minimum-wage jobs and make 79¢ for every $1 earned by men: http://ti.me/2oiPZ2o v/ @Money #SavingsFactFriday Tweet this now
Women face unique challenges when it comes to saving & retirement: http://bit.ly/2onyv4N @WISERWomen h/t @AmericaSaves #SavingsFactFriday Tweet this now
Women are 35% more likely to live in poverty than men: http://bit.ly/2oa3fZM @nwlc #SavingsFactFriday Tweet this now
Women more likely to have a 401(k) & take advantage of catch-up contributions: http://bit.ly/2oAHfnp v/ @themotleyfool #SavingsFactFriday Tweet this now
74% of men, but only 67% of women, reported that they were making saving progress: http://bit.ly/2ok2yKK #SavingsFactFriday Tweet this now
72% of men vs. 60% of women reported spending less than their income and saving the difference. http://bit.ly/2ok2yKK #SavingsFactFriday Tweet this now
Additional Posts
Have a savings tip or story that other women might benefit from? Share it w/ @AmericaSaves and you could win $25: http://bit.ly/2oiP4iv Tweet this now
>25% of employed women have fast-growing job that pays <$15/hr, + is female-dominated: http://on.mktw.net/2oa1MCJ v/ @MarketWatch @AmericaSaves Tweet this now
Let @AmericaSaves help you stay committed to your savings goal! Take the pledge today: http://bit.ly/2oiQERf Tweet this now
Want to start saving for #retirement but don't think you can afford it? Think again: http://bit.ly/2onSFLZ @AmericaSaves Tweet this now
Take charge of your financial future. Download a free copy of @irionline's "Women and Wealth" book: http://bit.ly/2ojVM7S @AmericaSaves Tweet this now
Relevant Resources
Share the following resources with your audience and with partnering organizations.
From America Saves:
Blog Articles
- It's Time to 'Rethink Retirement'
- Make Today the Day: Figure out where your future paycheck will come from!
- Preparing for Retirement: Gender Differences in Approaches to Money
- Why Women Need to Save More for Retirement
Research
- Less Than Half of U.S. Households Report Good Savings Progress, According to 9th Annual America Saves Week Survey
- Personal Savings Index Shows Increased Saving Interest, Effort, And Effectiveness In First Four Months Of 2014
Other Resources and Research:
Fidelity Investments
Institute for Women's Policy Research
LIMRA Secure Retirement Institute
National Academy of Social Insurance
- Overcoming Barriers to Retirement Security for Women: The Role of Social Security
- Women's Stake in Social Security
National Women's Law Center
- Chartbook: The Women in the Low-Wage Workforce May Not Be Who You Think
- Despite Job Growth, Black and Latina Women Are Still Being Left Behind
- National Snapshot: Poverty Among Women & Families, 2015
- Women and the Minimum Wage, State by State
Pew Research Center
Social Security Administration
TIAA
US Bureau of Labor Statistics
Vanguard
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