Unique Challenges Women Face in Retirement

Unique Retirement Concerns Women Face (VIDEO)

Angela Dorsey - Highlights

Longevity

Women are more likely to live longer than men (81 versus 76 for a man) which means they must plan to save enough money to last them more years in retirement.
Women must also plan ahead for the likelihood of outliving their spouse.
To conquer this very real challenge, lay out a few financial projections with an appropriate planning horizon and stress-test each projection for a longer life span.
How do these projections hold up if you live an additional two, five, or 10 years? Evaluate the strength of your current strategies and determine whether or not you need to save more aggressively.

Healthcare & Long-Term Care Costs

Living longer also means more healthcare costs as you age.
Women spend more on healthcare than men
Women usually require long-term care for 3.7 years (or around 44 months) versus 2.2 years (or around 26 months) for men. When these costs are added up, women will spend $409,420 and men will spend $241,930 on LTC alone, based on 2022 averages.
There may not be a way to prevent illnesses and old age from catching up with you, but you can prevent higher healthcare costs in your later years by taking care of your health now.
Consider setting up contingency funds for healthcare costs as you age, and research long-term care coverage to see if it would benefit your financial situation.
By combining proactive physical care and dedicated financial preparation, you may be able to lessen the impact of healthcare expenses in your retirement years.

Women Tend to Invest More Conservatively Than Men

Studies have shown that women generally take less risks when investing, which can result in not reaching financial goals.
The key to avoiding future investment gaps is education. While women are more likely to hold cash and bonds in their portfolios, when they are guided and taught about risk tolerance, they often take more calculated risks.
Find a financial professional who will empower you to make informed decisions that are in your best interest.

Women Live Full Lives!

When you are busy with your career and family, it’s easy to put financial planning off for the future. But procrastination will hurt you.
The later you start investing, the less you’ll have at the end of the day when you need it most.
Case in point: If you save $10,000 a year and earn a 5% return each year for 27 years, you’ll end up with about $125,000 less than if you had saved for 30 years!
You don’t need something else on your to-do list, and you definitely don’t need more stress.
Partner with a professional who puts you first so you can keep investing in what’s most important to you while still building a strong financial future.