Are you a woman who’s in control of her finances?
With many women likely to become solely responsible for their financial wellbeing at some point in their lifetime, you might very well want to be.
Higher rates of divorce coupled with women living longer than men1 brings to light an important point, if you’re a woman, and that’s the likelihood that at some stage in your lifetime you’ll be responsible for your own financial wellbeing (if you aren’t already).
If you’re thinking, (meh!) my other half will always take care of me, you might be interested to know that according to a study published by UBS Wealth Management in the United States last year, eight out of 10 women will become solely responsible for their financial wellbeing at one point or another2.
We take a look at some of the insights that came out of the report, as well as what tips women had for other women in regard to their money matters.
Findings from the report
Some of the statistics that came out of the study included the following3:
-
59% of divorcees and widows wish they’d been more involved in long-term financial decisions.
-
56% of divorcees and widows discovered financial surprises after the fact, such as high debt, outdated wills and hidden accounts.
-
53% would have done fewer household chores to find more time for finances.
-
98% encouraged other women to take a more active role in their money matters.
Cross-generational differences
According to the report, younger women were perpetuating rather than transforming the status quo, with 61% of Millennial women leaving financial decisions to their partner, compared to 55% of Generation X women and 54% of Baby Boomer women4.
Despite this, younger women were also more likely to believe they should be doing more to better manage their finances than their older counterparts5.
Meanwhile, the reasons why women minimised their role in major financial decisions, included men being seen as financial providers, men often being the bread winners within the household and time constraints providing challenges for women, as they often took on the majority of household duties, which included paying bills and tracking day-to-day spending6.
Actions you could take today
Some insights that came out of the research included7:
-
Know what assets and liabilities you have
-
Know what you want in life
-
Know what cashflow you have to meet your short-term expenses
-
Know what you’ve got behind you for your longer-term needs, like retirement
-
Know what you want beyond that, such as whether you want to leave an inheritance
-
Have the money talk with your partner
Please contact us on 02 4605 0350 if we can be of any assistance on this topic
1-7 UBS Report – Own your worth (How women can break the cycle of abdication and take control of their wealth) pages 1, intro, 2, 3, 5, 6, 9
Important information:This information is provided by AMP Life Limited. It is general information only and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances and the relevant Product Disclosure Statement or Terms and Conditions, available by calling 13 30 30, before deciding what’s right for you. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek professional advice before making any financial decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability for any resulting loss or damage of the reader or any other person