Being a financial advisor requires that I do massive amounts of reading in order to stay abreast of personal financial and economic trends and issues that my clients may face. Which means I am continually inundated with the reality of the state of our economy.
Quite frankly, it is a gloomy picture, especially for women.
Let’s face it, throughout history women have been getting the short end of the proverbial stick, especially in the area of financial security.
For instance, women are painfully aware of the pay gap that exists between the genders. Yes, men still earn more than women when working in the same professions. Yet, we are seeing more and more that women are earning more than their husbands and they are opening new businesses at a rate that outpaces men. Yay for us!
While evidence of these advances is encouraging, I urge women not to take their eye off of the real issue here, which is that women face a number of financial challenges in retirement.
A number of social and economic factors threaten the financial security of women, especially in retirement.
Statistically speaking, women outlive men. Not only because men tend to marry younger women, but because women live longer. Which means that if the husband requires extensive (and expensive) medical care before he passes, the wife will be left with depleted savings to live on.
By the way, financial experts are saying that retirees should plan on spending approximately $240,000 on healthcare costs. That’s $240K for each spouse. Yikes!!!
One of the reasons is obviously the rising costs of healthcare; but also because people are living longer.
Centenarians are the fasting growing age segment of our society.
The average age a woman becomes widowed is age 59 ½. So, if she lives into her nineties (or to age 100!), she will need at least thirty years of retirement income saved up.
If you haven’t figured it out yet, let me spell it out for you…..
Women are in danger of out-living their assets in retirement. This is called longevity risk.
Why is this happening you might ask.
Let’s look at the reality of how most Americans deal with money:
So, how can a woman prepare for the economic storm ahead and ensure she enjoys a financially secure retirement? In a word…..
If you haven’t been much of a planner with regards to your finances or retirement, here are a few tips to get you connected to your money:
Decide you will become financially savvy with what you have right now. Decide that you will connect with your money, which means you know what you have coming in each month; you know what your expenses are; you know what you need to be saving for retirement; and you know what financial tools will help you get there.
Want to start taking charge of your finances now?
If you have questions regarding your finances or you would like to contact me.
If you want to receive more information on how to take charge of your finances or how to get started on planning for retirement, let’s stay connected on social media: