People’s lives around the world have been hit hard by the Covid-19 pandemic. Shutdowns, illness, work, childcare and other aspects of day-to-day life have been turned upside down. One area especially hard hit are finances and for women, the pandemic has shed light on the unique challenges they face.
An unfortunate effect the quarantine and other stresses the pandemic has brought is the breakdown of marriages. For some, the pressure has proven too much leading to divorce. This can be financially disastrous to women, especially those that chose to forgo career in order to care for their family. The U.S. Government Accountability Office noted that divorce d women have seen up to a 41% reduction in their household income. Women experiencing a divorce could benefit from a financial adviser who can help reassess future financial goals.
The Covid-19 pandemic has caused a huge shift in the workplace. More and more are working remotely, especially women as they account for a large number of office, social services and educational workers. With school closed, the pandemic has also forced many women to take a leave from their jobs in order to help with remote learning and childcare. The loss of income has contributed to unsteadiness in financial security as well as help to widen the pay gap between women and their male counterparts.
The gender pay gap effects more than just day-to-day finances for women. The less money they have to live on, the less there is to put away for their retirement. Couple that with the fact that women tend to have longer lifespans than men and the recipe for financial stress is complete. For women who were married, the situation may be worse as the possibility of putting children over career is greater. The financial hardships the pandemic has brought upon women will only exasperate this issue as women have a harder time putting funds away.
Shutdowns and quarantines have made it difficult for women to seek professional help with their finances. This is most unfortunate as failure to seek help early will lead to lower employment earnings and therefore a lower retirement income. A lack of confidence also hinders women from finding financial freedom.