Canadian women today are busier than ever, often juggling a career and family.
While the relationship between women and money has definitely evolved over the past few decades, a recent national survey commissioned by the Financial Planning Standards Council (FPSC) reveals that nearly 40% of women still felt they knew little about finance or investing.1
Here are some tips and insights to help women ensure their future financial well-being.
Be prepared for an extended retirement
On average, women outlive men by four years, with a life expectancy of 85.2 As women continue to live longer lives, the need for financial planning is critical as they may need to fund a retirement that could last 20 years or more. Longevity risk is one of the main concerns facing retirees. It refers to the risk of outliving your savings. Speak with your financial advisor to ensure you’re on track to save enough for a long and happy retirement.
Don’t be afraid of taking on risk
The downside of letting actual or perceived market risk impact long-term planning is very real. An overly conservative approach to investing can limit your growth potential, and with that, increase the risk of falling short of your retirement goals or running of out of money (ex. longevity risk), especially after factoring in inflation.
Diversifying your portfolio to include a balance of conservative and growthoriented investments has the potential to boost the value of your portfolio over the long run and combat longevity risk.
Any move to increase the return-potential of your portfolio comes with added risk, but one that can be managed with proper planning and the right balance of investments for each stage of your life.
Remember to invest in yourself
Studies show that women often reduce or stop saving for retirement due to childcare or eldercare responsibilities. While it’s important to be there for your family, it’s equally important to remember to keep investing in your future.
If you haven’t already done so, setting up Pre-Authorized Contributions (PACs) is an easy and convenient way to start building up savings for your financial goals–be it an emergency fund, a new car, child’s education or retirement. You can choose how much money you want save, how often, as well as which accounts or investments you’re contributing to.
To learn more and see how quickly your savings can add up by investing regularly with PACs try out our dynamic video. Visit your nearest Scotiabank branch and an advisor will be happy to set up a PAC that meets your needs.
Choose the right advisor for you
A financial advisor can be instrumental in helping you to prioritize and reach your financial goals by creating a financial plan unique to your situation. Talking about your finances and goals will be easier if you choose the right advisor for you. As in any relationship, open and honest communication is key. Think of your relationship with your advisor as a partnership, with both of you taking an active role to reach your financial goals. By taking this approach, your advisor can provide you with the knowledge, support and motivation that can help you reach your financial goals with confidence.
Creating a financial plan may sound like an overwhelming task, but your bank can help. Advisors can help you customize a plan that’s right for you. Talk to your advisor today.
1 Financial Planning Standards Council, Omni Report: Financial Independence, February 21, 2018.
2 2019 World Population Review (http://worldpopulationreview.com/countries/life-expectancy/)
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