Updated: Mar 25
Retirement planning is extremely important for women, and ideally it should take into account the entirety of financial planning, including resources, the family’s situation, risks, and employment. However, many women are more focused on meeting their families’ current needs than on their longer-term futures.
There are many factors that inform us about the importance of retirement planning for women. Recent studies by the Society of Actuaries examined men’s and women’s perspectives on retirement separately. Their research showed that women expressed much more concern about their retirement futures than men. Men were more willing to wait for a problem to arise, rather than plan for it. In another study, more than half of women indicated one of their biggest concerns was the thought of running out of money in retirement - their biggest fear after losing a spouse. Some even expressed a fear of losing all their money and becoming homeless.
Another factor is that women tend to have a longer life expectancy. Retirement planning for women often overlooks the fact that women may be spending the second half of their retirement living alone, as more women than men are likely to find themselves single due to living longer and divorce. In addition to living longer, women often get paid less than men (82 cents for every dollar), and as a result are often unable to save enough for retirement. According to a report by the World Economic Forum, women in the U.S. face a retirement savings gap of 10 years, meaning they should expect to live 10 years longer than the money they’ve saved for retirement.
Women face different risks and challenges than their male counterparts, which can have a significant impact on their ability to achieve financial planning goals. Women are likely to have less saved for retirement due to lower incomes, time out of the workforce, serving as caregivers, etc. This means they may have less saved for retirement and may need to rely on Social Security more than men. 63% of women say they have no savings or less than $10,000 in retirement savings.
There are many statistics around women and money, and the unique challenges women experience in managing and building wealth. From gender gap to life events to caregiving, these factors show up in a woman’s financial security, especially in later years. Women are likely to be the primary decision maker at some point of their lives, making it imperative for them to consider their own well-being. And while many associate well-being with health and wellness, financial planning, including a life insurance strategy, is also a form of well-being.
While most people associate life insurance with the death benefit used to provide a financial safety net for loved ones, many policies also offer financial benefits that can be used for retirement planning. Permanent life insurance, for instance, is a unique asset that can help address many of the financial planning concerns and challenges faced by women, including:
● Protecting the family by replacing lost income, paying for child care expenses, funding college education, and providing retirement security for surviving spouse;
● Providing tax-advantaged supplemental retirement income; and
● Providing a source of funds to help pay long-term care expenses.
Innovations within permanent life insurance have made the category much more dynamic in recent years and worth considering for women in need of death benefit protection as well as more flexible options for their finances.
Whether you are married or single, planning for retirement is a critical form of self-care that will deliver peace and confidence when you need it most. Having comfort in knowing that you have money in place to cover emergencies, your health needs, and your lifestyle. Want to find out how TermProvider can help you secure the right life insurance for you at the right price? Get a quote right now here or call us at 800.682.2017.