Accelerating action towards women’s financial empowerment
AT the current rate of progress toward gender equality, it will take until 2158, approximately five generations from now, to reach full gender parity, according to data from the World Economic Forum (WEF). Women have unique challenges affecting their financial stability, including longer life expectancy, wage gaps, and career interruptions, which makes the call to ‘accelerate action’ urgent.
On average, women outlive men by at least five years globally. This means that as women, we have to be better financially prepared to enjoy retirement. Additionally, with the burden of care typically resting on women in most households, this often results in career interruptions which increases the likelihood of wage gaps and less time spent building your financial future.
While significant barriers to gender equality remain, with the right action and support, positive progress can be made for women everywhere. The WEF calls for all stakeholders to join the World Gender Parity Sprint, aimed at increasing gender equality by 2030. Here are some actions that women can take to accelerate financial empowerment:
1. Embrace financial literacy: Understanding financial basics is the first step to financial independence and empowerment. Start with free online resources or local workshops on budgeting fundamentals, debt management, and investing. Knowledge is power-and being financially literate enables informed decision-making.
2. Tackle the wage gap: Negotiation is a vital skill. Research salary trends in your industry and prepare to advocate for yourself in performance reviews and job offers to command your worth. Consider joining women-focused networking groups that provide mentorship and negotiation workshops.
3. Plan for the long haul: Given a statistically longer lifespan, women should plan for a more extended retirement. Begin by contributing to a retirement plan as early as possible and as much as allowable; through your employer or open your own retirement account if you are self-employed or your company does not offer this benefit. Prioritise compound interest by investing in diversified portfolios, including real estate, aiming to maximize long-term gains. This will help to offset the lower pension received by women, as a result of the “annuity factor.”
4. Create diverse income streams: Diversification isn’t just for investments. Explore side businesses or freelancing to create additional income streams and generate passive income. This strategy not only supplements your income but also provides a safety net during economic fluctuations.
5. Navigate career interruptions: Career breaks are common, especially for caregiving women. To lessen the impact, maintain a robust professional network and consider part-time or freelance opportunities during breaks to keep skills relevant. In the changing work environment, remote job opportunities are also a great way to advance your career while balancing motherhood and caring for elderly parents.
6. Secure your health financially: According to findings shared by University of the West Indies health researchers, “gender differences in health-status (was identified) with women having significantly higher disease burden than men and reporting less satisfaction with their health-status. All the major chronic diseases except cancer were higher in females.” Additionally, Jamaican women also report a higher incidence of depression and anxiety. Therefore, invest in health and long-term care insurance to moderate the financial risks associated with health issues as you age. Evaluate policies that align with your health needs and financial capabilities. Prioritise mental health as this is often a silent killer and affects all aspects of life.
7. Seek expert guidance: Engage with financial professionals like your financial advisor and financial coach, who understand the unique challenges faced by women. They can offer tailored advice and financial plans that align with your specific life goals and circumstances.
8. Build a supportive network: Surround yourself with a community of like-minded women who support your financial ambitions and personal development. Whether through online platforms or local groups, sharing experiences and strategies can be immensely beneficial, after all we have an individual and collective responsibility to accelerate action toward financial empowerment.
Let’s embrace the power of financial empowerment and work to ensure a future where every woman has the confidence and resources to shape her destiny.
Kaycier Clarke-Grant is financial coach and CEO, MoneySmart Consultants. She is passionate about empowering individuals to realise financial freedom by bolstering their money management skills through financial literacy, resources and coaching.
KAYCIER CLARKE-GRANT
