Are you prepared to take control of your financial future after your divorce, especially in the area of retirement planning? If you are a woman, probably not. Studies show that 74% of women do not know enough about retirement investing, 59% can only guess at what they need to save for retirement, and 54% have no retirement savings strategy whatsoever.
A recent survey of women investors by the Boston Consulting Group found that more than 70% are dissatisfied with the investment advice they receive. Some of the reasons women are dissatisfied with investment advice are disrespectful advisors, patronizing attitudes, narrower investment choices based upon the assumption that women can’t handle risk, and a lack of understanding of women’s financial needs. These responses are partly due to different communication styles between women and men. Most financial advisors presently are men. So, if you are unhappy with the financial advice you have been getting, you are far from alone.
Women now approaching retirement age have traditionally relied upon their spouses both to make investment decisions and to earn retirement funds. However, women have a number of issues with retirement planning that differ from those of men. Women tend to live longer and earn less over their work lifetime, partly due to absences from the workforce to raise children. Divorce changes the whole financial picture, including planning for retirement. A woman’s specific retirement needs may not be met by a retirement plan set up for a man because her longer life span and lower earning power means that she will need to save more.
So whether you have always been financially independent, or are suddenly being forced into that position due to divorce, do not be afraid to ask questions, educate yourself, ask for referrals for financial advisors, and seek out financial advice from competent sources. Your future is in your hands. When you take charge of your finances and retirement planning, you will also increase your self-esteem and confidence.