Not For Diamonds: Why Women Need More Money than Men
By Maliha Imami-Alam
Last Updated:August 01, 2008

As men and women, we have our common as well as unique needs. No doubt, the need to plan a secure financial future is a common need for all, but women face certain unique challenges that warrant a financial planning program that is different.

The good news for women: they live longer, so they will have longer to enjoy their retirement. The bad news: they live longer, and so their retirement will be much more expensive than that of their male counterparts.

Women tend to outlive their husbands. According to Women Institute for Financial Education, only one-third of women over sixty-five are married, and on average, women will survive their husbands by 7 years. This combination of being on their own and living longer means that women need far more retirement income than do most men.

Unfortunately, women’s pension plans just don’t measure up. A study by the Older Women’s League says that women only receive 54% as much private pension income as do men, and they are falling further and further behind. There is a simple reason for this. The pension a woman receives depends on whether you stay on the job. On average, women are out of the work force for at least 10 years taking care of families, while men, on average, take just one year out of the work force.

Women often think that they can rely on their husbands’ pensions, but they are wrong. Let’s assume that a couple is living on the husband’s pension, and the woman dies. Though grief-stricken, the husband suffers no financial detriment, and goes on collecting his full pension. On the other hand if the husband dies first, as is ordinarily the case, his wife will probably get only 50% survivor benefits with which she will not be able to continue the same life style. No wonder, according to Women Institute for Financial Education, 41% of older women are living close to the poverty line. Not surprisingly, most widows who are poor now were not poor before their husbands died.

These facts exemplify the need for women to plan for their own financial future, differently than that of the men in their lives. But in reality, most women do not take an active interest in financial matters, let alone building a financial future based on their individual needs.

The reasons for this apathy could be many: lack of time; family needs over personal needs; the complex subject matter of personal finances; wading through the maze of options and the list goes on.

Daya is stepping forward to help women begin crucial process of securing their future. On August 23, Daya will present a must-attend educational seminar on money management for women titled “Journey to Empowerment: A Woman & Her Finances”. The seminar will be held at University Center , University of Houston Main Campus, and is free to those (women and men) who pre-register online by August 22. Registration at the door is $10 per person. Breakfast, lunch, and educational material are included with the registration.

Register for the seminar today and take the first step towards taking control of your financial life. It’s never too early or too late to think about this important aspect of a woman’s life.