Whether a woman is single, married, or widowed when she reaches retirement, she still enters having fought through the pre-retirement challenges previously discussed. Those issues lead to women, on average, having smaller retirement nest eggs than men. This is a disturbing fact since we know that by having more years in retirement, women actually require more funds than men, not less.
Another compounding factor is that women pay more in healthcare costs than men. This is simply another financial reality of living longer. According to The Wall Street Journal, women’s healthcare costs in retirement exceed men’s by 20 percent. With longer life expectancy comes a greater probability of developing serious medical issues, and less chance of having a spouse-caregiver. These and other issues contribute to higher healthcare costs for women in retirement.
So, What Can I Do?
As I’ve learned quite quickly from my wife, mother, sister and other important women in my life, women are far better equipped to deal with challenges than men. I’m confident that any woman reading this article will be able to successfully combat these challenges by considering the following tips:
- Save early, often, and more
- Ensure that you have the proper asset mix in your investment portfolio
- Recognize that living longer has its benefits, and its costs
- Create a financial plan unique not just to your gender, but to you as an individual
These four tips are just a few to help you overcome the distinct challenges you will likely face, both pre and post-retirement. I recommend meeting with a competent financial advisor who can build a plan that takes into account all of the unique issues you may face, in addition to the ones mentioned in this article. I’m not naïve enough to believe these are the only issues women face. Each woman, just like each person, has their own idiosyncratic challenges when it comes to retirement planning. Make sure you have an advisor who understands those as well, to put you in the best position to enjoy a successful retirement.
Would you like to speak with a financial advisor who can assist you with your retirement planning? Click here to contact Soren Christensen and Advanced Wealth Advisors now.