Women need more money than men!
Most married men would agree with the above statement – if not for actual fiscal considerations then at least for their feminine magic.
Aside from the age old male/female trysts, the fact is that women live on average 7 years longer than men. And in-spite of the equalization of women in the work force (at least the aspiration of pay equity) men on average earn more than women. That gap has closed to be sure, but it is still not an equal work force when it comes to men versus women in the pay equity department. Taken together women need more money than men. In other words women will pay less into the Canada Pension Plan as a result of lesser earnings and women will have the need for an income longer than men – about 7 years longer.
I find that in the majority of cases men handle the financial affairs of the household. That is not right but it is not wrong either, notwithstanding single women. How married people divide the household chores can be as diverse as the relationship itself. The important factor in a relationship is that they agree, who does what and that they cooperate with the overall objective.
However, given the above statistics it is very important that regardless of which person in the relationship handles the finances, they agree that extra planning is required for the female spouse.
Canada Pension alleviates this situation somewhat as they allow (upon application) the women of the house to leave out the worst years of pensionable earnings while her children were under age 7. It is worthy of note, to repeat, that to receive this consideration it has to be applied for and the application process can potentially be onerous. Proof of children is required and as easy as that sounds (looking at your 2 year old today) it may not be that easy to produce a birth certificate when the time comes. CPP maximum payable in 2008 was $884.58. Not a lot to count on when you consider the cost of living in Alberta.
Women living well into their nineties and beyond will become more common in the future. Medical technology is keeping us all alive longer, and chances are women will benefit over men in keeping with the statistic noted above.
So the bottom line is women will need more money and careful planning will be required to account for their extra time on the green side of the dirt. And men here is a happy thought – in order to try and keep up with your spouse
Get your prostate checked regularly!
Red Adair had a favourite quote: If you think hiring a Professional is expensive ‐ wait until you hire an amateur. James Kew is a Financial Planning Professional in Sherwood Park at 1-800-810-7526. All Financial Planning advice should only be undertaken after consultation with a Financial Planner who is a member of Advocis or the Canadian Association of Financial Planners.