FOOL'S EYE VIEW
Why Women Need to Save More

By Jane Mack (TMFJane)
May 8, 2003

The latest batch of statistics from the 2001 census should act as a warning sign to any woman who is expecting her knight in shining armour to come charging up the hill eager to look after her.

There simply aren't enough men to go around.

Even more importantly, there aren't enough men to go around during a woman's child-bearing years. There are 81,300 more women than men aged 20 to 29, and 132,633 more women than men aged 30 to 39.

Any woman should answer the following questions if she's still under the impression that she doesn't need to worry about money:

Are you single?

If you're single then, for the time being, you are clearly your own responsibility and should organise your finances as if you will always be alone. At least if you do end up finding the love of your life, you'll be financially prepared to start your new life together.

Are you a single mother?

More than 90% of single parents are women. If you are one of them, not only are you on your own, but you are also responsible for someone else. I know, I know, it's totally obvious but so many women still think Mr Right is going to come along at some point that they coast along instead of seriously planning for the future. You need to think about when the children have fled the nest and what your financial situation will be then.

Do you plan to have children?

Regardless of whether or not there is a partner in situ, a surprisingly high number of women do not want children. One in five, actually. I don't have children myself and, stupid as it may seem, I do think about who's going to visit me in the old people's home and who I'm going to leave my money too if my husband goes before me. That's no reason to have children, of course, and who's to say they'd look after you in your old age anyway. The fact is you need to have money when you're old so you can pay for any necessary care.

Do you have a partner and children?

If you do, then you have a good chance of living happily ever after. However, the divorce rate is running at 40% and separations run even higher for those co-habiting outside marriage.

The facts are:

• Women earn only about 80% of men's salaries;
• Women live on average seven years longer than men;
• Less than 40% of women in the UK have any sort of pension provision, and;
• Women are twice as likely as their partners to give up their careers (and their money) to care for their children.

Remember, there is a shortage of eligible bachelors. All the signs are pointing towards women needing to plan for their financial futures themselves.

You may know that the Fool is running a seminar for women next week. It's over-subscribed, which I think is a good indication that many women are beginning to realise that they need to take action themselves. Hurrah!

At any rate, we're running another one next month. But if you can't make it, there's always the book. If you're a woman and you haven't read A Girl's Best Friend Is Her Money yet, then give it a go. Though I say so myself, it is rather useful.

More:   Money Makeover for Women | A Girl's Best Friend Is Her Money