HomeSex & RelationshipsWhy Women Should Be Financially Prepared for Retirement

Why Women Should Be Financially Prepared for Retirement

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Statistically speaking, women live 5 years longer than men on average. Studies have shown that 77 percent of all widows happen to be women. In more advanced age groups, women tend to outnumber men 2 to 1. Even over the age of 100, 81 percent of the population is women.

This is why women need to be extra diligent when they prepare for retirement. The reality is that women have a higher chance of being alone and being self-reliant financially in their older years. As a woman, one may need to spend some of her savings on her partner. This includes money for treatments or even end-of-life expenses.

This leaves many financially vulnerable in one’s final years. A survey concluded that around 60 percent of women feel like they will go broke if they live long enough to be 100 years old. It is estimated that, on average, retirement costs up to $738,000. Only 8 percent of women in America have $300,000 or more saved. This is why it is more important for women to prepare for retirement.

Let’s talk about some of the biggest issues women may face when it comes to longevity and finances.

Longer Lives Require More Money

Studies show that around 43 percent of women are unaware of the amount of money they will need for healthcare when they retired. According to estimates, this amount is $155,000 at least, just for health care alone. What’s more, is that this estimate does not even include the cost of any long-term care or life insurance costs that may be required.

Most Care-givers Are Women

Around 75 percent of all caregivers are women. This means they may have a reduced earning potential and minimum retirement savings. Caregiving is one of the biggest roles women can play. It starts with caring for one’s children. It can continue if there are elderly parents or a sick spouse that need support. These constant breaks in the career can eventually add up. This is one of the biggest reasons why having a plan in place is crucial for financial stability.

Women Tend to Keep Money in Cash Rather Than Investing

More than 50 percent of women keep $20,000 or more in cash. This money is usually separate from their retirement savings or emergency savings. Additionally, more than a third of women are estimated to having over $50,000 in these savings accounts. While having some extra cash is nice, not making it work for you is not. Interest rates currently are at an all-time low. This means that this money is losing value over time and will be unable to keep up with inflation.

This is why women should look towards investing this money instead. It will be protected against inflation and increase over time if invested smartly. This can be a massive benefit for people approaching their twilight years.

The Importance of Having a Financial Plan

Having an effective retirement plan is crucial to financial stability, no matter who you are. It just happens to be even more important for women. Having such a plan may help you get through those extra years of life after a retirement plan. Having a solid plan can also help reduce overall stress levels.

This planning usually starts with writing down your personal goals for at least 20 years down the road. These goals can include anything from when you plan to retire to the amount of savings you wish to have. The next step is to analyze the assets you currently own and what you owe. It’s important to also include final expenses or costs related to your funeral. This can help you come up with a more effective and detailed financial plan for the future.


There is no doubt that women are more prone to financial troubles in their later years compared to men. This is why planning is crucial. A great place to start is speaking with a financial and life insurance advisor.

Women will need to save more than men as they tend to live longer. This will play a part in your monthly expenses starting today. It is wise not to delay working on a financial plan even at a young age. Financial planning, which starts early, is more likely to pay off well in the later years.

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