COVID-19 And Women’s Finances: 4 Money Ideas

COVID-19 has further deteriorated the status of women’s finances. Here are four money ideas for women to consider now.

In 1920 the Nineteenth Amendment guaranteed women the right to vote, Over the next hundred years the investment process has been democratized. It has never been more important to understand your financial picture.

Sharon Snow, Metropolitan Capital/RIA Advisors.

Nicole Bateman and Martha Ross penned an essay for Brookings.edu titled “Why has COVID-19 been especially harmful for working women?” In their eye-opening work, the authors outline the economic challenges for women before and during the pandemic.

Nearly half of working women (pre-pandemic), 46% – $28 million, worked in low-wage jobs with median earnings of less than eleven dollars an hour. A significant number support themselves and families with low-paying positions. Per the analysis, 50% are single parents, 63% are in prime working years (age 25-54), and 57% work full time year-round, indicating this isn’t a side gig.

A panel survey of 2,557 working parents between last Mother’s Day and Father’s Day revealed that one out of every four women who lost jobs during the pandemic did so due to a lack of childcare.

More significant job loss among women.

A later study by Pew’s Stateline posted in September 2020 discovered that mothers of children 12 years old and younger lost nearly 2.2 million jobs between February and August, a 12% drop. Fathers of small children saw a 4% drop of about 870,000 jobs.

Covid-19 Women, Covid-19 and Women’s Finances: 4 Money Ideas.

Overall, the Labor Force Participation Rate for women has increased for most cohorts. The labor force for women 75 and older has skyrocketed – rising over 107% since 2000. The LFPR for men is up half as much.

Women continue to experience longevity risk (women live longer than men) and a lifetime of lower wages. As the customary stay-at-home parents, women earn lower Social Security retirement benefits and are more dependent on spousal and survivor benefits. Due to Covid-related economic conditions, these benefits are even more critical.

 

COVID-19 has created more worry among women.

The sixth annual Nationwide Advisor Authority study polled 2,500 women and men, including 1,768 financial professionals and 817 investors. Harris Poll conducted the online survey from May through June 2020.

Results showcased how COVID-19 further exacerbated women’s ongoing retirement angst. Women have less room for error in saving and investing. They are more concerned with risk mitigation than men. So, it wasn’t surprising to discover that 72% of females polled said the pandemic impacted how long they will be able to live off current savings.

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Disclosure: Real Investment Advice is powered by RIA Advisors, an investment advisory firm located in Houston, Texas with more than $800 million under management. As a team of certified and ...

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