Retirement Planning for Women: How to Prepare for a Longer Retirement
When our parents retired, living to 75 was considered a long life, and Social Security was often supplemented by a pension. Today, the picture looks different. The Social Security Administration (SSA) estimates that today’s average 65-year-old woman will live to nearly 87. Given these projections, a retirement of 20 years or longer may well be in your future.
Are You Prepared for a Long Retirement?
A 20-year retirement is realistic — but so is a 30-year or even 40-year retirement. Don’t laugh; it could happen. The SSA projects that roughly 25% of today’s 65-year-olds will live past age 90, and about 10% will live past age 95.
That kind of longevity makes retirement planning for women especially important, since women statistically need their savings and income streams to last longer than men’s.
Start With the Right Questions
Before building a strategy, it helps to ask:
- How can you draw retirement income from what you’ve saved?
- How might you create additional income streams to complement Social Security?
- What are some ways to protect your retirement savings and other financial assets?
Work With a Financial Professional
A financial professional who understands the specific challenges women face in saving for retirement can offer valuable guidance. These challenges may include:
- Income inequality over a career
- Time out of the workforce due to childcare or eldercare responsibilities
- Maintaining financial stability after a divorce or the death of a spouse
Invest Strategically for Women’s Retirement Income
If you’re in your fifties, you have less time to recover from major investment losses than you once did — so protecting what you’ve built may become a priority.
At the same time, planning for a retirement that could last 30 or 40 years requires a clear understanding of your risk tolerance and long-term goals. Retirement strategies for women often need to balance both protection and long-term growth.
Consider Long-Term Care Planning for Women
Women tend to have longer average life expectancies than men, which can mean a greater likelihood of needing extended eldercare.
It’s important to know that Medicare is not a substitute for extended care insurance. Medicare only covers a few weeks of nursing home care, and only under specific circumstances. Long-term care coverage can help provide financial relief if the need for extended care arises.
Claim Social Security for Women Carefully
If your career and health allow it, delaying Social Security can be a smart move as part of your women’s retirement planning strategy.
- Waiting until full retirement age to claim benefits can result in larger monthly payments.
- For every year you delay claiming Social Security, your monthly benefit grows by about 8%.
Retire With a Strategy
As you approach retirement, working with a financial professional who understands your unique goals can help you design an approach built to serve you well for decades to come.
Frequently Asked Questions
Why is retirement planning different for women?
Women generally live longer than men on average, which means retirement savings and income need to stretch further. Women may also face career interruptions for childcare or eldercare, along with income inequality, both of which can affect how much is saved for retirement.
How long should a woman plan for retirement to last?
Given that today’s average 65-year-old woman is expected to live to nearly 87, and a meaningful share of women live well into their 90s, many financial professionals recommend planning for a retirement that could last 25 to 30 years or more.
Should women delay claiming Social Security benefits?
If health and career circumstances allow, delaying Social Security until full retirement age — or later — can increase monthly benefits by about 8% for each year of delay, which may be especially valuable given women’s longer average life expectancy.
Is Medicare enough to cover long-term care needs?
No. Medicare only covers a limited number of weeks of nursing home care, and only under specific circumstances. Long-term care insurance can help cover costs Medicare doesn’t, which is an important consideration in long-term care planning for women.
What should women look for in a financial professional for retirement planning?
Look for a financial professional who understands the specific retirement challenges women face — including career interruptions, income inequality, and life transitions like divorce or widowhood — and who can help build a strategy tailored to those realities.
Where can women get retirement planning help in Southwest Florida?
Women in Fort Myers and across Southwest Florida can work with a fee-only fiduciary financial planner to build a retirement income strategy that accounts for longevity, Social Security timing, and long-term care needs.
This material is developed from sources believed to be providing accurate information and is for general informational purposes only. It is not intended as tax or legal advice and may not be relied upon for the purpose of avoiding any federal tax penalties. Please consult a qualified tax or legal professional regarding your individual situation. The opinions expressed and material provided are for general information only and should not be considered a solicitation for the purchase or sale of any security.
Sources: CDC.gov | Social Security Administration | Medicare.gov | Investopedia
