Women often face special challenges when planning for retirement. Your career may be interrupted more often to care for children or elderly parents, or you may spend less time in the workforce and earn less money than men in the same age group. If you are a 25-year-old female working full-time for 40 years, retiring at age 65, you may need to save 1.5% more every year than a man in order to reach your target savings goals.
As a result, your retirement plan balances, Social Security benefits, and pension benefits are often lower. In addition to earning less, women generally live longer than men, and you may face having to stretch limited retirement savings and benefits over many years. By understanding these unique headwinds, you can develop strategies that will provide the greatest chance of achieving your goals.
More than 1 million women are widowed every year in our country. According to the U.S. Census Bureau, widows will soon total 13 million. No woman wants to join this heart-breaking club. But 70% of all married women will experience widowhood. Check the gender mix at your local nursing home: 80% of women die single, and 80% more likely to be impoverished in retirement than men.
It’s reported that 70% of widows change advisors after their spouse dies. One of the reasons is because their advisors didn’t understand their grief and their journey through widowhood.
Gray or Silver Divorce
Unfortunately, the rate of late-life divorce is on the rise. Whether known as “gray” divorce or “silver” divorce, older couples are un-tying the knot they tied decades ago. Initially, the term “gray divorce” referred only to men and women who divorced after being married for 40 years or more. Today, gray divorce describes anyone over the age of 50 who finds themselves suddenly single. The Pew Research Center reported in 2017 that the divorce rate for those over the age of 50 has doubled since the 1990s.
Divorce in your 60s or 70s can truly be a frightening experience, particularly in the financial realm. While there may not be child custody issues, that does not mean the grown children do not get involved, perhaps even taking sides with one parent. There are many different considerations for seniors contemplating a divorce, namely financial stability, and the possibility of finding companionship at this late stage in life.
How we Work with Women
We understand that “women” are not a collective group, and you are unique in your personal experiences and background. Unfortunately, as a woman, you have less support, both financially and emotionally, as you age. Living longer means you need more funds, and living alone means your households have fewer people contributing income into them.
We handle tax planning, estate planning, portfolio management, charitable planning, risk management, and other financial advice, so you can focus on your career, family, and future dreams. If you are suddenly single, having a competent, unbiased, and a trusted advisor can bring you confidence and peace of mind. Our goal is to help you feel financially secure.
Source: “Gender Gap in Financial Wellness” Finanical Finesse 2016 study