Your Money Matters: Finance for Middle-Aged Women

Finance is a thorny issue for most everyone, regardless of gender, regardless of age. Life can throw up unexpected financial hurdles when we least expect them. Being mindful that these things can, and do happen, can make us prudent when dealing with the money we have and earn.

This is, of course, sometimes easier said than done. Many people experience financial insecurity, especially as people progress in age. In a study entitled “The Seattle Midlife Women’s Health Study” and published in Women’s Midlife Health, many of the 81 women who partook in the study identified financial stresses as being among the most pronounced.¹ The women who took part in the study identified different life pressures, and ranged from ages 40 through 65. The study lasted (for some) up to 23 years which allowed the study’s authors to pinpoint key challenges that the women faced as they aged.

Financial pressures for women as they progress in age 

The authors of the study were blunt in their assessment after reviewing the data provided by the women: “Generating enough resources was an all-encompassing task for many study participants.” Financial pressures arose from a variety of sectors:

• Loss of a personal business venture
• Spouse/partner losing their employment
• Helping grown-up children pay for their schooling (university/college)
• Attempting to achieve financial security

Another factor was trying to find a position that offered suitable health benefits which might not be as relatable to readers in Canada. Health coverage is not publicly available in the United States to the extent it is in Canada.

Money tips for middle-aged people

Developing wise financial habits is something we should all try to develop, and financial literacy is becoming more important. For those of us who are older (and naturally, wiser too!), there are some important tips to consider when dealing with money matters.

A little disclaimer: these tips are just general advice. Seek professional advice from a qualified financial advisor.

• Contribute to your RRSP: RRSP funds/accounts are not taxed and are a great way to accumulate savings for later in life
• Ensure you have a tax-free savings account, or TFSA: like an RRSP, they too act as a tax shelter while making your investments grow
• If possible, delay taking your Canada Pension Plan benefits. You can start taking them as early as age 60, but if you do so, payments are subject to a reduction; payments can be delayed up to age 70, whereby you’d get a higher monthly amount (higher amounts kick in after age 65).²
• Talk to a certified financial planner. All major banks would be happy to assign someone to you to discuss your financial health and help you plan for the future.
• Budget and keep track of your spending. There are many ways you can track your spending habits (many banks now have options that allow you to do this, giving you a paperless option) which can help you keep on track of your spending and saving.

You can, and should, also talk to people in your peer group – friends! – who can also share how they are managing their finances and the steps they’ve taken to help ensure their financial futures. Amintro is an online social community platform that allows you to do just that – meet people in your age group, and share experiences, stories, and of course, advice too.

The benefits of working past 60

There is an unfortunate stereotype that women who choose to work past 60 are mostly doing so because they’re struggling. Society often thinks that women who work past supposed “retirement age” do so because they need the money, or a spouse has stopped working, or that they are unable to support their lives otherwise. Nothing could be further than the truth for many women.

Work isn’t just a means to make money, it helps provide goals: something to strive for, be it self-improvement, helping others, or in creating something, whatever it may be. Why should anyone give up something they may have invested many years in, simply because they reach a certain age? Women are living longer, healthier lives, and many want to be – and are – as active at 65 as they were at 35.

Closing thoughts

There’s no doubt finance is a challenge for many. It can be a cause of considerable personal and relational stress. Open dialogue and honest discussions can do much to close any gaps, as can planning and making adjustments along the way. Also, investing while you can, getting sound financial advice from an advisor and even from friends (new or old), can help guide your situation. Tackling money head-on and not shirking away from it is one of the best things you can do. You’ll thank yourself in the long-term.

References:

1. Mitchell, Thomas, and Woods, Women’s Midlife Health, The challenges of midlife women: themes from the Seattle midlife Women’s health study, June 15, 2018. 
2. Royal Bank of Canada Wealth Management, Financial planning checklist for seniors

Written and contributed by Charlene Nadalin, Founder of Amintro. Amintro is the online social platform and information hub exclusively for those 50+ interested in expanding their circles of friends and staying involved, informed and connected. Another great thing about Amintro is that it’s FREE and easy to join! To learn more about Amintro, please visit https://amintro.com/ 

Your Next Steps offered by Patricia Muir, Founder of Executive Encore: Women Finding Fulfillment After 60

• Listen to the Executive Encore podcast. Women Finding Fulfillment After 60! 
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• Explore strategies for finding fulfillment after 60. Schedule a 30-minute complimentary call to explore possibilities. On this call, Patricia and you will get acquainted and discuss what outcome is important to you. Patricia will explain the application process for working with her. By the end of the call, you will have a "quick-win" action plan.