For many people, retirement is a top financial goal. But for women, it’s particularly important to face the numbers and get invested as the deck is stacked against you in three important ways…

1. Women Live Longer

People in general are living longer than ever before – and women even more so. Today, the average life expectancy for U.S. women is 81.1 years versus 76.1 years for men. In fact, among Americans age 85 and older, women outnumber men by a 2 to 1 ratio.

Living longer also means funding retirement for an extra five years. As well as funding every day expenses and healthcare costs for another 5 years, women also represent a huge 70% of the people in nursing homes.

Unfortunately, despite evidence that women live longer, husbands and wives still tend to retire at the same time, according to a research paper by Nicole Maestas, a professor of health care policy at Harvard Medical School. Her research also showed women tend to marry older men and, as a result, women typically enter retirement two to three years younger than their spouses.

2. Less Savings

There are many reasons why women don’t save as much as their male counterparts:

• Women still make only about 80.5 cents for every dollar a man makes in a similar job.
• Women are more likely to take time out from work to raise children or care for other family members.
• A research study found Women ranked “saving for retirement” as the fifth-highest priority. It fell under “meeting daily living costs” and “paying off debt.”

Ultimately, these challenges all add up when facing retirement. Smaller paychecks and fewer years in the workforce compounded with “more urgent” financial matters means less money to set aside for retirement.

3. Value of Social Security and Pensions

Social Security does not provide a comfortable standard of living, and average benefits are even lower for women: The average Social Security check for a woman is $375.81 less than the average man’s.

Because the amount you’ll receive from Social Security is a calculation based on your 35 highest earning years, women receiving lower wages combined with leaving the workforce early, directly impacts a woman’s earnings in retirement.

There is Hope

As a woman approaching retirement, there’s no getting around the need to grow a significant nest egg to fund your golden years. Based on the three challenges identified above, a comprehensive financial plan can help immensely.

Advanced financial planning is key to a successful transition from working life to retirement. A financial planner can help you forecast your ability to live comfortably and put your mind at ease when facing retirement income concerns.

It’s never too late to get planning. Get the conversation started with a financial advisor at CKS Summit Group today. What’s more, every strategy session with us is complimentary.

Call us today on 586-286-5820 or click here to learn more and schedule your strategy session online.