March 2, 2023
March is Women’s History Month, and women continue to play an increasingly important role in finance. 44 of the companies on the 2022 Fortune 500 list were led by females.1 As we celebrate the incredible accomplishments of women, we have to acknowledge the potential risk factors they face when it comes to retirement planning. Let’s dive into some of the potential risk factors below.
If you’re a 65-year-old woman, statistics say you have another 20.7 years of life left, compared with 18.1 years for the average male.2 To add to the fact that women will need income to live off of for years after their spouse has passed, this stat also affects Social Security benefits for women who were stay-at-home caregivers or didn’t work outside of the home, and therefore do not receive Social Security benefits themselves.
Women might live longer than their male counterparts, but they also experience more health issues. Among the people who require nursing home care, 70 percent are women. And, for women who need long-term care, they’ll need it for 3.7 years (on average). With the average monthly cost of a private nursing home at $8,910, that adds up to $395,604, which can quickly eat into retirement savings.
Only 14 percent of women frequently discuss saving, investing, and planning for retirement with family and friends.3 While it is a common idea that women invest in less risky investments, it may also come back to the wage gap. With less income, women may be less willing to invest that income because it’s deemed as necessary for daily living.
Our goal is to help you retire with added confidence. If you have questions about your current plan or would like to get started, please contact us to schedule a complimentary consultation.
We look forward to talking with you!