BMO Study: Mothers Are in Charge of their Household Finances...But Are They Taking Charge of their Retirement?
- BMO study finds that more than 80 per cent of women act as "Chief Financial Officers" of their households - Women's wealth increasing by 8 per cent a year in North America - However, men are still more likely than women to hold investments, have fin
May 12, 2012 --
TORONTO, ONTARIO -- (Marketwire) -- 05/12/12 -- As Mothers' Day approaches, BMO advises Canadian women to take control of their growing wealth to ensure they are well prepared to deal with significant life events such as marriage, home ownership, children and retirement.
Canadian women are controlling an increasing amount of wealth:
-- According to a BMO study, 82 per cent of Canadian women are either the primary decision-maker or have equal responsibility for household financial decisions. -- Women control approximately one-third of all wealth in North America, with this number increasing by 8 per cent annually.(i)
However, despite this financial clout, women are still less confident than men about their finances. A recent report from the BMO Retirement Institute found that:
-- Men are more likely than women to have investments and a financial plan (62 per cent versus 52 per cent). -- Men also tend to be more engaged and confident with financial planning, as well as being more open to taking risks. -- As a result of a variety of factors, including lower earnings, intermittent work histories and longer life spans, women tend to be less financially prepared than men for retirement.
"It's great news that women are controlling an increasing amount of wealth in Canada and are key decision makers for household finances," said Tina Di Vito, Head, BMO Retirement Institute. "However, it's also clear that women need to become more confident with managing their finances and preparing for life events such as retirement."
Ms. Di Vito added that, for women to be able to take charge of their retirement, they need to be actively engaged in their personal financial matters. This includes having a financial plan, an investment strategy and a financial professional who can help map everything out.
BMO's Tina Di Vito offers advice on how women can increase their level of financial preparedness:
-- Select an advisor - Women are often looking for clear, honest and relevant communication. When selecting a financial advisor, look for transparency and listening skills. Seek advice that is tailored to your unique situation. -- Educate yourself - One of the best ways to learn more about investing and retirement is through education. BMO offers a variety of tips and strategies for saving for retirement as well as planning the non- financial aspect of retirement with our interactive Take Charge of Your Retirement (TM) tool. For more information on these tips and tool please visit: http://www.bmo.com/home/personal/banking/investments/retirement- savings/retirement-planning/what-stage-are-you-in/my-working-years -- Make a plan - Establishing a financial plan is key to ensuring you are well on your way to a secure retirement. In your financial plan, make sure to include your short-term and long-term goals and the realistic and strategic steps you can take to reach them.
For more information on saving and planning for retirement, please visit www.bmo.com/retirement.
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(i)Source: Boston Consulting Group
Amanda Robinson, Toronto
Sarah Bensadoun, Montreal
Laurie Grant, Vancouver
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