Five ways women can plan for retirement

Today, some women are more confident than ever in their ability to manage their money and make informed financial choices. Whether single, married, widowed, or divorced, women are seeking ways to empower themselves and each other, especially when it comes to managing finances and planning for a secure retirement.

Why is retirement planning important for women?

Women often face unique challenges in retirement planning. They typically live longer than men and may earn less for a variety of reasons such as caretaking responsibilities, or time spent as stay-at-home parents. These factors can impact savings and retirement benefits, making it crucial for women to plan early, seek expert guidance, and prioritize building financial security. Let's explore some practical tips and strategies to help women navigate retirement planning and create a stronger roadmap for the future.

What is the best age for a woman to retire?

There's no one-size-fits-all answer to the best retirement age for women. It depends on individual circumstances. Key factors to consider include eligibility for Social Security and Medicare, overall health, financial readiness, and personal goals. Carefully evaluating these variables can help determine the ideal time to retire.

Five Retirement Tips for Women

Because women in retirement may face unique challenges, a solid financial strategy is essential for navigating this chapter with confidence. Consider these tips to help boost financial security, maintain well-being, and enjoy a fulfilling retirement:

Seek expert retirement planning and financial advice

Connecting with a financial professional can be a way for women to better understand available retirement benefits, such as 401(k)s. A financial expert can recommend products and services that may address personal needs beyond employer-based solutions and help implement a sound financial strategy tailored to individual goals.

Create a retirement plan

Some women are organizing and mapping out their retirement path, a key step in taking control of their financial future. While some women may be satisfied with their current plans, there's always room to build. To help ensure a retirement plan stays on track, consider:

Calculate retirement income needs:

Retirees typically need about 70% to 90% of their pre-retirement income to cover standard living expenses, according to the U.S. Department of Labor.¹

Assess finances:

Regularly review income and savings to determine spending and the amount needed to meet retirement goals. Creating a budget based on estimated retirement expenses is the best approach.

Pay down debt:

Adjusting expenses to reduce debt can strengthen finances for those planning retirement.

Creating a retirement plan doesn't have to be daunting. A financial professional can help assess current assets and future needs, develop a tailored plan aligned with long-term goals, and help improve financial security for retirement.

Create a healthcare cost strategy

Rising medical costs are a growing concern for retirees, and women face unique challenges in this area. According to the Centers for Disease Control and Prevention (CDC), women have a life expectancy of 80.2 years on average versus 74.8 years for men. women typically live about five years longer than men, which can lead to higher healthcare expenses. Some women earn less during their careers, resulting in lower Social Security benefits. Given these factors, it’s important for women to develop a strategy for saving for healthcare costs. One option may be starting a health savings account (HSA).

Learn about Social Security and pension plans for women

Social Security benefits are based on work history, earnings, and the age at which benefits begin. Some women face life choices such as, staying home to raise children, working their whole life, divorce, or remarriage, that can affect their retirement benefits. While Social Security protections for women have strengthened over the years, they may not cover all financial needs. Therefore, planning and considering alternative retirement savings methods could be important.

For more information about Social Security, consult the Social Security Administration website, “Social Security for Women”.

Discuss long-term goals with partners

Given that some women may be managing household finances, it may be important to have open conversations with partners. This could help ensure that financial plans are aligned and that both parties are actively working toward a stable future. Discussions may also provide an opportunity to revisit financial priorities and make adjustments as needed to stay on track with long-term retirement goals.

With careful planning and the right resources, women can confidently navigate the complexities of retirement. By addressing the unique challenges they may face, women can make informed decisions that creates a retirement that supports their goals and well-being for years to come.

1 U.S. Department of Labor, Top 10 Ways to Prepare for Retirement, September 2023. https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/dol-top-10-ways-to-prepare-for-retirement-booklet-2023.pdf

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

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