As Mothers’ Day approaches, Bank of Montreal is advising 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.
According to a BMO study, 82% of Canadian women are either the primary decision-maker or have equal responsibility for household financial decisions. The study notes that women control approximately one-third of all wealth in North America, with this number increasing by 8% annually.
However, despite this financial clout, women are still less confident than men about their finances, suggests a recent report from the BMO Retirement Institute. That report found that men are more likely than women to have investments and a financial plan, 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,” says 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.”
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.