e statistics, the need for women to be active financial planners is strengthened. In this regard, Almond (1998) reports that currently in American, divorce destroys 50 percent of all marriages and this is a rate that has held steady for several years. One of the many consequences of divorce is that most women are forced to take on financial responsibility for themselves and their children.
Another reason why it is important for women to take an active role in managing their money and preparing for their future is that, on the average, women are paid only 76 percent of what men are paid (Waddell & Reed Financial Products, Incorporated, 1998). Moreover, nearly 50 percent of working women do not have a company-sponsored pension plan (Waddell & Reed Financial Products, Incorporated, 1998).
Further, Social Security and pension benefits alone don't provide most retired women with enough money to maintain their pre-retirement living standards. Citing current census data, Waddell and Reed Financial Products, Inc. (1998) report that in 1991, the average man retiring at age 65 collected $782 a month in Social Security benefits. The average woman retiring at this age receives only $523 a month---and this is despite the fact that Social Security provides lower wage earners a higher percentage of their income.
An excellent study that shows the financial plight of working women with respect to financial planning was conducted by Perkins (1992) who explored retirement and work experiences of a sample of working-class women. The sample consisted of 99 women aged 66 84 years (Mean age = 71.22 years) who had applied for a job training and placement program in Philadelphia.
All women in the sample were retirees, although 30 percent had returned to work at the time of the survey, mostly in part-time, low-paying jobs; they received an average yearly income of less than $14,000; and 31 percent were married.
Methods involved of admi...