Financial education, the cornerstone
Financial education is one of these solutions, indicates the specialist. According to a recent study by the firm conducted in partnership with the Retirement Research Center at Boston College, women have a lower level of financial literacy on average than men.
However, understanding the savings, investment and disbursement mechanisms allows women to make more informed decisions throughout their working lives, points out the expert. She believes that a solid financial education is a prerequisite for any successful retirement strategy.
Discussions within the couple also play an important role: a better distribution of financial responsibilities between spouses helps reduce blind spots and prevent situations of economic dependence. Women play a central role in household financial decisions. By equipping them better, it is possible to transform inequalities into actions, indicates the specialist
Regular follow-ups
Tracy Rokas also recommends establishing regular follow-ups with clients to adjust the financial strategy according to unforeseen events, whether market fluctuations, unexpected health expenses or changes in personal situation. The objective is to build a diversified portfolio, aligned with the risk tolerance and life objectives of each client, specifies Tracy Rokas.
To overcome the difficulties, she recommends that pre-retired women reduce the excess liquidity in their portfolios. The study shows that investors often hold almost half of their portfolio in cash, while the threshold for protecting themselves against inflation is around 20%.
Des données unfavorables
According to the study, pre-retiring women are three times more likely than their male counterparts to have no investments. Nearly 18% have no investments outside of their employer’s retirement plan, whether a registered retirement savings plan (RRSP), stocks and bonds, fixed-income securities or annuities.
Furthermore, female investors generally display greater risk aversion and tend to favor balanced funds and target date funds, which can slow down the growth of their capital in the long term.
The study also highlights that women’s ability to invest is limited by a heavier debt burden, particularly in terms of student debt. More than a quarter of pre-retiring American women report having credit card debt of more than US$10,000. Their assets available for investment represent 72% of those held by men.
In Canada, women arrive at retirement with assets representing on average 78% of that of men, according to Statistics Canada. This gap is often explained by lower incomes and more fragmented career paths, particularly due to family responsibilities and career interruptions.
Read also: 5 measures to help women retire
In Quebec, the median income of women aged 65 and over was $30,100, compared to $41,400 for men in 2023, a gap of approximately 27%, according to the Institut de la tourisme du Québec. In addition, more elderly Quebec women live alone than elsewhere in Canada, which increases their vulnerability to the cost of housing and unexpected health expenses.
