By Marie Philips
Special to the Financial Independence Hub
The financial assets controlled by Canadian women as well the income earned by women is projected to grow significantly over the next decade.
This increase in wealth will result from a greater overall participation in the work force, higher level professions, an increase in female entrepreneurship and being the beneficiaries of a large share of the $1 trillion wealth transfer that is underway in Canada.
By 2026, women in Canada will control close to half of all accumulated financial wealth, roughly $900 billion in financial and real estate assets. That’s a significant increase compared to a decade earlier, when the share was closer to one third.
Yet according to a recent white paper published by IPC Private Wealth in collaboration with Strategic Insight, almost two thirds of financial advisors (85% of whom are men) do not believe a female client should be viewed in any different light than a male client.
If we look at some of the concerns women have, we can see that there are distinct financial planning needs for women compared to men. Life expectancy at birth now means mortality in 2015 is 84 (80 for men). Women live longer and are likely to have interrupted careers as a result of family responsibilities (children and caring for elderly parents) which all lead to potential lower available savings for retirement income.
Caregiver women more likely to end up in poverty
Research shows that women caregivers are likely to spend an average of 12 years out of the workforce raising children and caring for an older relative or friend. Continue Reading…