Retirement Blog

Challenges Women Face

March 2, 2023

retirement challenges for women

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.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.

Women Are More Likely to Outlive Their Spouses

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.

More Likely to Experience Health Issues

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.

Start Investing Later and Are Less Risk Averse

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.

Here are some things women can do to face these challenges:

  • Understand what is in your retirement accounts.
  • Consider a long-term care plan for you and your spouse.
  • Adopt a healthy lifestyle.
  • Save regularly.
  • Embrace lifelong learning.
  • Talk to a financial professional about establishing a written retirement income plan.

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!