Financial professionals will tell you that every retirement plan is distinct because every retiree is unique, but that isn’t exactly true.

Married couples almost always get just one retirement plan. Do you know what it is? Where it is?

Though that makes sense in many ways — after all, those two people are hoping to live a long and happy life together — their retirement plan must also represent their very different needs.

Unfortunately, even now in 2019, married women tend to take a back seat when it comes to working out the details of their financial future leaving most of the financial planning to their husbands. This is troublesome, given that, on average, women still live longer and therefore have a real stake in how long their retirement income will last.

Nearly every woman will have sole responsibility for her finances at some stage in her life.alone

Some will choose not to marry. Many will divorce. And even married women need to consider their income prospects, weighing the facts that if they’re widowed, they’ll lose one Social Security check and possibly at least part of a pension check and will probably have to pay more in taxes when they file as an individual.

Of course, that isn’t the only challenge that makes a women’s participation in financial planning a must. Others include:

1. Women still tend to be the primary family caregiver.

When their children are small, women generally take the caregiving lead, which can take a toll on their bottom line in retirement. Stay-at-home moms especially struggle to catch up. When they’re young, they can miss out on years of contributions, possibly with an employer match, and the benefits of compounding in a 401(k). Later, they’ll likely see less in Social Security and pension benefits. If they get divorced, they may lack the experience or support system that allows them to thrive at work and earn a higher salary.

It doesn’t end there. Women are also likely to be the caregiver for elderly parents further affecting their careers and finances. Many report taking time off from work to help out, cutting their hours or passing up promotions.

2. Women continue to face a wage gap.

Although they now make up approximately half of the workforce, women on average earn less than men in nearly every occupation for which there is enough data to calculate an earnings ratio for both genders. In 2017, female full-time, year-round workers made only 80.5 wage gap for every dollar men earn. That gap can be explained in part by women’s time out of the workforce, but it’s also because of occupational segregation; female-dominated jobs generally don’t pay as much as traditionally male-centric jobs. Again, the gap can affect women’s Social Security and pension benefits, as well as their retirement savings.


3. Women can expect to pay more in health care costs in retirement.

black and white blood pressure kit


That figure also doesn’t include long-term care. Couples generally care for each other as long as they can as they age — but if her spouse predeceases her, which is likely, a surviving wife may need to pay for outside care for herself. This cost also continues to rise. Genworth’s most recent survey found that the annual median cost of care now ranges from $18,720 for adult day care services to $100,375 for a private room in a nursing home.

4. Women are typically more conservative investors.

When they do get involved in financial planning, women are less likely to be risk-takers. Playing it safe is more comfortable — and probably a good approach when near or in retirement. Unfortunately, it also can mean less growth when women are in the accumulation stage of their investing years. Single and divorced women may need to pull more income from their investment savings in retirement if their Social Security and pension benefits are lacking.

5. Women have a hard time discussing their finances – even with a professional whose job is to help them.

When polled, 56% of women said they refrained from discussing finances because the subject is too personal; 27% said they were raised to not talk about finances, and 10% said they don’t understand or know how to talk about it intelligently.

Asked about working with an advisor, 47% said they’re hesitant to talk about money and investing with a financial professional, and 50% of those who had a primary investment firm said they had never spoken with a representative there.

The bottom line: My advice to all womendivorce

Clearly, there are issues here that must be overcome. But the women I talk with tell me they really do want a personalized financial strategy that gives them a better sense of security. They want to know if they’ve saved enough, if their money will last and if they have all their bases covered.

All women need their own financial plan.

You don’t have to know a lot about investing to ask those questions of an adviser, and you should be able to get answers that satisfy you with a plan that puts you on the right track.

If you’re a woman who’s been avoiding financial planning, or if you handed the job over to your spouse years ago, it’s never too late to get involved. Don’t be intimidated — by the jargon, your spouse or anything else. And don’t say you’re too busy. (Even if you are.)

Make this the year you take control of your own financial future.

I recommend a free retirement calculating and finance tool at Personal Capital. Head over to and check it out.


Published by Jan Elliott

I provides tips and tools for retiring women 55+ who are seeking real support to plan for their golden years. Retirement for women today is totally different than it was for our mothers. Women today want more -to not only have their finances on order but their relationships, finding their passion or finally letting go of baggage. I use my own experiences and much research to provide women with the best tips and tools possible.

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