By Gregg Gonzalez, CFP®
Retirement looks different for everyone but for women, there are unique factors that make planning even more essential. From longer life expectancies and career breaks to caregiving responsibilities and wage gaps, women face distinct challenges when preparing for retirement. The good news? With the right strategies, women can retire with confidence and independence.
1. Plan for Longevity
On average, women live five years longer than men. That means women not only need to save more but also ensure their income will last longer.
The RetireStrong Strategy: Consider lifetime income options such as annuities, delay claiming Social Security until full retirement age (or later), and review your withdrawal strategy regularly to avoid outliving your savings.
2. Bridge the Wage and Savings Gaps
Women often earn less over a lifetime due to wage disparities and time spent out of the workforce for caregiving. This can lead to smaller retirement account balances.
The RetireStrong Strategy: Maximize contributions to retirement accounts like 401(k)s and IRAs whenever possible. If you’re self-employed or working part-time, investigate SEP IRAs or Solo 401(k)s. Also, take full advantage of employer matching.
3. Make Up for Career Breaks
Time away from work, whether raising children or caring for aging parents, can limit retirement savings and affect Social Security benefits.
The RetireStrong Strategy: Use spousal IRA contributions if married and explore catch-up contributions if you’re over 50. Also, track your Social Security earnings record to ensure accuracy.
4. Invest with Confidence
Many women prioritize security before growth when investing, which can lead to more conservative portfolios that may not keep pace with inflation.
The RetireStrong Strategy: Build an investment plan based on your goals and time horizon, not fear. Diversify your portfolio and don’t be afraid to work with a trusted advisor who understands your values and financial objectives.
5. Plan for Healthcare Costs
Women are more likely to face higher healthcare expenses in retirement, especially if living alone later in life.
The RetireStrong Strategy: Incorporate long-term care insurance or savings into your retirement plan. Know your Medicare options and consider a Health Savings Account (HSA) if you’re still working and eligible.
6. Create a Purpose-Driven Retirement
Retirement isn’t just a financial decision; it’s a lifestyle one. Women often thrive with social connection, meaningful activity, and confidence.
The RetireStrong Strategy: Design your retirement vision early. Whether that includes travel, volunteering, or a part-time encore career, align your finances with your goals.
Final Thought: Empower Your Future
You don’t have to navigate retirement planning alone. Whether you’re just getting started or refining your existing plan, working with a financial advisor who understands women’s unique financial journeys can make all the difference. The sooner you start, the more freedom you’ll have to retire on your own terms with clarity and confidence.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
