September 18, 2018

Financial Planning for Women

Both women and men are concerned with financial security. However, women are more likely to be responsible for taking care of others and on average live longer than men. Women are also more likely to be the sole financial decision-maker late in life. Though educated and successful, earning more now than ever before, women often lack confidence in their ability to make financial decisions.

Let’s explore some situations in which women may find themselves in and why financial planning for women is so important.

financial planning for women

Living Longer

In addition to living longer than men, women often earn less at their jobs and spend fewer years in the workforce:

  • On average, a woman retiring at age 65 can expect to live another 19 years, or 3 years longer than a man retiring at the same age.
  • Women are also more likely to interrupt their careers to take care of family members. Hence, they are more likely to work fewer years and contribute less toward their retirement.
  • Social Security is the sole source of support for almost one-quarter of unmarried women age 65 or older. Consequently, women are twice as likely as men to live out their golden years at or below poverty levels.

Given longer life expectancies and a potentially diminishing ability to depend on Social Security for retirement income, it is extremely important for women to begin to plan for their retirement years as early as possible.

Financial Decision Maker

Women may or may not be the family’s breadwinner, but they are often the primary decision maker regarding spending and saving by their household.

  • Women are the sole or main breadwinner in 40% of U.S. households.
  • According to the National Center for Women and Retirement Research 80%-90% of women will, at some point, be solely responsible for all household financial decisions.
  • 83% of consumer purchases in the United States are made by women.

Who Will Take Care of You?

retirement planning for women

Studies indicate that women are more likely to be the primary caregiver for others; and tend to outlive their spouses, leaving them responsible for taking care of themselves in later years.

  • Women are likely to suffer financial setbacks as a result of divorce, whereas men are more apt to be financially better off after a divorce.
  • In 2000, 40% of women age 65+ were living alone; 51% of 
women age 80 were living alone.
  • More than 77% of nursing home residents are women.

Take The Next Step

Start the conversation about your financial future. Schedule an Introductory Call.