Forget about the recession. Let's talk about the SHE-cession! 💅🏼
Pandemic-related job cuts forced many women out of work because mama needed to be home with the kids. 👨👩👦 However, even though we're heading back to normal, women still lag behind men when it comes to jobs and finances. In fact, women’s savings took a big hit while they were out of work and the ladies are still trying to catch up. 💸
So what's the deal? Can we #girlboss our way out of this?
Here’s Five Fast Facts on the current state of women and their finances:
- 😤 Well That's Just Unfair - Women who work full-time jobs are paid an average of 83.7% as much as men. That comes out to a $10,000 difference each year. According to the US Labor Department, women have to work 15 months to earn the same as men do in 12. Researchers say this is largely due to the fact that women work less hours and are less likely to ask for a raise. Plus, women often cut back on work to take care of their precious babies once families start to grow.
- 💲 Savings Stats - According to the Census Bureau, in 2018, only half of women ages 55 to 66 reported having personal retirement savings. Additionally, 30% of men had $100,000 or more in personal retirement savings, compared to just 22% of women.
- 🪱 Early Bird Catches the Worm - Although it's never too late to start saving, sooner's always better than later. Women's incomes tend to peak when they reach their late 30s, while men peak way later in their 50s. If you're working now but planning to start a family down the road, save as much as possible and take advantage of employer perks like retirement and health savings plans.
- 📈 Invest It - When it comes to investments, consider a target date fund. Target date funds automatically adjust to a more conservative strategy as you age, helping to safeguard your money. Roth IRAs are also a good investment choice. You can take money out of a Roth tax-free if you need it in an emergency later.
- 💡 Just In Case - To plan smart for the future, women should also consider picking up long-term care insurance. Women tend to outlive men and are often younger than their partners. A long-term insurance plan helps fund medical care expenses later in life.
🔥Bottom line: There's a silver lining to this lagging news. According to financial services giant Fidelity, roughly 90% of women have either recently taken steps to get their finances in order or plan to do so within the next 6 months. 53% socked money away in an emergency fund, two-thirds adjusted their spending, and 60% have saved more or paid down debt. Want to nerd out even more? Head here to check out more investing tips.
Are you feeling the impact of the SHE-cession?
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