The average woman has a career and is financially independent. She keeps informed of her personal financial situation and knows how to take charge if things begin to slip out of control. Women often do their own planning and don’t hesitate to explore new ways to make investments, such as online investing.
However, women’s financial goals often differ to those of men. Generally speaking, their risk tolerance is lower. That is partly because of scarcity: a woman’s average salary is still only equivalent to about 80 percent of a man’s average salary.
Coupled with maternity leave and the need to miss more work days because of family responsibilities, they accumulate fewer savings than men during their active working lives. In fact, because of absences from the workforce, women accumulate 10 years less salary than men.
They also tend to live longer than men, which increases their need for retirement savings. And emergency funds are particularly important for women who may have need of extra reserves when required to be absent from the workplace.
All this means that women, in general, tend to be more careful with the resources that they have. It also means that it is in the best interest of women to plan their retirements earlier and more carefully than men do.