#ChooseToChallenge for International Women’s Day
Author: Sound Choices
March 8, 2021
The theme for this year’s International Women’s Day – #ChooseToChallenge – has three key messages:
But how does that apply to saving and investing?
Women now control more wealth
Control 32% of total global private wealth.1
Reaching US$93 Trillion by 2023 – strengthened by education and workforce participation.1
And projected to control C$3.8 Trillion in wealth in Canada by 2028.2
And not just through wealth transfer
41% of Canadian households report women as the primary breadwinners3
Women’s earnings 47% of family income2
Half of millennial women created their own wealth and 72% are primary decision makers for financial planning.4
But still face the gender effect in their finances
Women live longer, so retirement savings need to last longer.5
Women on average earn 81% of what men earn, resulting in a lifetime earnings differential on average of $900,000.6
Women are 3 times more likely to leave the workforce to take care of others.2
A few key strategies could make all the difference
Even one year can potentially make a big difference at age 65.
Every little bit helps, even $100 a month.
Boost your returns.
What you invest in can make a huge difference over the long term.
The role of a financial coach
Want to improve what you eat, consult a nutritionist. Want to make the best use of your time at the gym, hire a personal trainer. Want to improve your finances, hire an advisor.
An advisor can evaluate your entire financial situation, and build a plan to get you started.
32% of women reported using a financial advisor for guidance.7
75% of those regret not doing it sooner.7
2Source: The Changing Landscape of Women’s Wealth, CIBC Economics, released March 4, 2019.
3Primary breadwinner refers to the “proportion of women who earned more than half of their family’s income.” Source: Statistics Canada. Women in Canada: A Gender-based Statistical Report The Economic Well-Being of Women in Canada. Released May 16, 2018.
4 Source: https://www.rbcwealthmanagement.com/ca/en/research-insights/the-new-face-of-wealth-and-legacy-how-women-are-redefining-wealth-giving-and-legacy-planning/detail/.
5Source: Statistics Canada. Table 13-10-0114-01 Life expectancy and other elements of the life table, Canada, all provinces except Prince Edward Island.
6Source: https://www.payscale.com/data/gender-pay-gap. Released March 31, 2020. Assumptions: A 40-year career. The gender pay gap does not change and that employers offer an average 3% base pay increase to their employees each year.
7Source: Allianz Life Survey, February 2017.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
© 2021 AGF Management Limited. All rights reserved.