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Women’s Unique Challenges for Retirement

senior woman adding change to a bird house bankMarch is Women’s History Month, a time to celebrate the achievements of women throughout history. It’s also an opportunity to acknowledge the unique financial challenges women face in retirement, particularly when it comes to long-term care. Planning ahead with a trusted financial advisor is crucial to supporting independence and securing quality care in later years.

Women face several factors that increase their likelihood of needing long-term care but two drive most needs: life experience and life expectancy.

  • Life experience. Women take more time out of the workforce to care for aging parents, spouses, or children than men. Women spend about 70% more time caring for children, and over 60% of caregivers for seniors are women. On average, the gender pay gap means that women earn only about 83 cents for every dollar a man is paid. These experiences can lead to smaller retirement accounts, Social Security benefits, savings, investments and other income, making it more difficult for them to cover long-term care expenses.
  • Life expectancy. Women outlive men; in 2023, women typically lived about six years longer. Still, women are more likely to have chronic health conditions than men, with over 28% having multiple chronic diseases. Age is also the biggest risk factor for dementia; about twice as many women have Alzheimer’s than men. Living longer increases the need for more help regardless of health, from home care to assisted living, which means living costs rise.

Financial strategies for women

To have the resources needed for a secure retirement, women must be proactive. Some key financial strategies include:

  • Maximizing Social Security benefits. Women can boost their retirement income by delaying Social Security benefits until age 70, increasing their monthly payouts. Additionally, widows and divorced women may be eligible for spousal or survivor benefits, which can provide added financial support.
  • Getting long-term care insurance. Purchasing a long-term care insurance policy can help cover the costs of home care, assisted living, and nursing home care. Since women are more likely to need these services, obtaining coverage early can be a wise investment.
  • Using health savings accounts (HSAs). HSAs allow tax-free contributions for medical expenses, making them a powerful tool for covering future healthcare and long-term care costs. Women who qualify should maximize their HSA contributions while they are working.
  • Investing in annuities or guaranteed income streams. Annuities and other guaranteed income products can help ensure a steady stream of money throughout retirement. These financial products provide stability and reduce the risk of outliving savings.
  • Creating estate plans and trusts. Establishing trusts and estate plans can help women protect their assets and ensure financial resources are available when needed. Proper planning also allows for Medicaid eligibility strategies if long-term care assistance is needed.
  • Working with a financial advisor. Partnering with financial specialist can ensure a strategic mix of income and investment solutions for the best overall outcomes.

At Longevity Income Solutions (LIS), we understand the unique challenges women face when planning for retirement and long-term care. Our financial specialists collaborate with women to develop personalized strategies that provide financial security and independence. We help:

  • Find the best funding options for long-term care, including insurance, annuities, and asset protection strategies.
  • Maximize Social Security and retirement income to ensure financial stability.
  • Navigate Medicaid planning and other financial solutions to cover care costs.
  • Empower women with knowledge and tools to take control of their financial future.

Planning ahead can make all the difference in ensuring a secure, independent, and dignified retirement. Contact us today to start preparing for the future with confidence.

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Sources: GEPI; Missouri State; Bureau of Labor Statistics; Medical News Today; CDC; Alzheimer’s Society; NCOA; CentSai

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