For various reasons, the state of a woman\u2019s financial security often depends on her marital status. A study from the U.S. Government Accountability Office says that women\u2019s household income dropped by 41 percent after divorce, nearly double the size of the decline men experienced. In 2020, women earned just 82.3 cents on the dollar compared with men, according to the Department of Labor\u2019s Bureau of Labor Statistics, a gap that was more pronounced for women of color. And women earn less than their male counterparts in nearly every occupation.<\/p>\n\n\n\n
A Stanford Center on Longevity study found that women tend to be as confident as men in making routine financial decisions but much less confident\u2014and usually less involved in\u2014making major financial decisions such as saving for retirement or investing.<\/p>\n\n\n\n
In many cases, a woman going through a divorce or the loss of a spouse may not be aware of their family\u2019s full financial situation. If you are currently married, you should be actively involved in major financial decisions and have access to all financial records.<\/p>\n\n\n\n
When you have confidence in your financial status\u2014if you have a strong financial plan in place and you\u2019ve built up savings and emergency funds\u2014you may be more confident asking for what you deserve at salary-review time.<\/p>\n\n\n\n
Support your proposal by documenting any significant accomplishments you\u2019ve made over the past year, particularly ways you\u2019ve contributed to your company\u2019s financial success.<\/p>\n\n\n\n
Employees tend to earn salary increases when they switch jobs. Exploring job opportunities every few years could confirm whether your current salary is appropriate, give you a reason to negotiate for a raise at your current job, or inspire you to make a career leap.<\/p>\n\n\n\n
Telling a recruiter your current salary or earning history can result in a lowball offer. When applying for jobs, you can see what comparable positions in your area pay by reviewing popular salary websites. Keep in mind that you can always ask for more after the initial salary offer.<\/p>\n\n\n\n
The National Alliance for Caregiving and AARP 2020 report on caregiving in the U.S. found that 61% of caregivers are female, and that female caregivers are less likely to work while providing care. When working on a financial plan with your advisor, incorporate the cost of childcare, including after-school support if your work hours require it. Consider long-term care and disability insurance coverage so that you won\u2019t have to leave the workforce to care for a spouse experiencing a health event.<\/p>\n\n\n\n
A change in marital status triggers the need to see who will inherit your assets. At least 26 states have statuses that automatically revoke beneficiary designations naming a spouse in the event of a divorce\u2013which may not be what you want. You may also need to revisit who you have designated to help with your estate, such as your attorney-in-fact, health care proxy, and executor.<\/p>\n\n\n\n
In addition to understanding your own retirement benefits, you should know about any spousal benefits you may be entitled to. If the marriage lasted for at least 10 years and you haven\u2019t remarried, you could be eligible for half of your ex-spouse\u2019s social security benefit amount at their full retirement age, even if they\u2019re not actively collecting it. The total amount you are owed and when you should start collecting will depend on your age, your personal earnings, your life expectancy, and whether you remarry.<\/p>\n\n\n\n
For retirement benefits, you would need at least a 10-year work history to qualify for your own social security benefits. To maximize these benefits, you may want to delay when you start collecting until age 70, depending on your life expectancy.<\/p>\n\n\n\n
If you don\u2019t have a spouse or a child, an estate plan can ensure that your wealth is effectively distributed. Generally, this means that assets would go to a parent or sibling if there\u2019s no surviving spouse or child and more remote family members if there are no surviving parents or siblings. If you have a large extended family, you may prefer that your wealth go to nieces, nephews, and charities.<\/p>\n\n\n\n
Whether it\u2019s by necessity because of a life change or you just want to become more involved in your finances, you can take charge of your financial security by staying fully informed of your options\u2014and the many considerations that go into solidifying your current financial situation, maximizing retirement benefits, and properly planning your estate.<\/p>\n\n\n\n
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer. Third party links are provided to you as a courtesy and are for informational purposes only. We make no representation as to the completeness or accuracy of information provided at these websites.<\/em><\/p>\n\n\n\n ###<\/p>\n\n\n\n The Wealth Transition Collective is located at 1632 Northampton Street Holyoke, MA 01040 and can be reached at 413-584-1805. Securities and Advisory Services offered through Commonwealth Financial Network. Member FINRA, SIPC, A Registered Investment Adviser. Fixed insurance products and services offered through CES Insurance Agency or The Wealth Transition Collective, Inc.<\/p>\n\n\n\n \u00a9 2022 Commonwealth Financial Network\u00ae<\/p>\n","protected":false},"excerpt":{"rendered":" For various reasons, the state of a woman\u2019s financial security often depends on her marital status. A study from the U.S. Government Accountability Office says that women\u2019s household income dropped by 41 percent after divorce, nearly double the size of the decline men experienced. In 2020, women earned just 82.3 cents on the dollar compared with men, according to the […]<\/p>\n","protected":false},"author":3,"featured_media":1954,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/posts\/1836"}],"collection":[{"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/comments?post=1836"}],"version-history":[{"count":1,"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/posts\/1836\/revisions"}],"predecessor-version":[{"id":1837,"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/posts\/1836\/revisions\/1837"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/media\/1954"}],"wp:attachment":[{"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/media?parent=1836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/categories?post=1836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.twealthtc.com\/wp-json\/wp\/v2\/tags?post=1836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}