Will financial costs of COVID-19 be greater for women?

While the spread of the COVID-19 virus seems to be having a more deadly effect on men than women, some in the financial industry are predicting a disproportionately more painful impact on women in terms of finances, because of the pay gap and other realities women face.

For instance, women make up a larger percentage of occupations in social services, education, personal care and services, and office and administrative support – positions that are more likely to be suspended, terminated or reduced to shorter hours, according to a PayScale analysis.

Women are also more likely to have to take time off, or even quit their jobs, to care for kids who are currently home from school, or to care for other family members. When returning back to work for the same position, women often incur a pay penalty of 7% on average, Pay Scale research found.

“Women already have to balance between their day jobs and their jobs waiting back at home,” said Judith Lu, founder of Blue Zone Wealth Advisors. “This tightrope act becomes even more challenging during this unprecedented time in which many women find themselves having to work, complete projects, conduct zoom meetings and coordinate staff remotely while simultaneously managing household, family and homeschool in the background.”

Women also tend to be among the first to be furloughed or laid off as companies reduce costs or restructure, Lu said, adding that those women who are laid off are likely to face difficulties in being rehired.

For those who are rehired, the new jobs often come with significant pay cuts effectively rolling back time and progress in a woman’s career, she said.

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For women breadwinners — those who are the primary or only person in a household generating income — the impact is especially notable.

“They are not only juggling work but also acting as  teacher, cook, nurse, physical activity leader/gym teacher, and mom needing to emotionally support everyone,” said Heather Ettinger, founder, Luma Wealth Advisors. 

And “everyone” extends beyond children. Women bear 80% of eldercare responsibilities in the U.S., Ettinger said.

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This means that women today are likely providing support of meals, prescription refills, and offering mental health assistance for parents or other older relatives or friends. And right now there are few outsourcing options for these tasks.

Female breadwinners, research shows, will put themselves last, which means that their health could be compromised right at the time her role in the family is critical.

“The price of this crisis is potentially her job and her health and absolutely no time to address the financial planning needs and opportunities presented in the current environment,” Ettinger said.