A number of recent surveys revealed the challenges women are facing as they live longer than men and become worried about providing for themselves for a longer lifespan. Many said they are not prepared.
Here are some of the financial issues women said they have with living longer:
ISSUE: Women said they are more likely than men to not know how to achieve their financial goals. SOLUTION: Develop a financial plan to determine what steps to take that could create a secure future and meet life goals.
ISSUE: More women than men said they feel their retirement savings are not enough, likely because they are more risk-adverse and less likely to invest in stocks and funds that could provide higher returns. SOLUTION: A fee-only financial planner such as SFP can explain risks and rewards and help allocate funds to appropriate investments.
ISSUE: More women than men are buying income annuities for retirement, not knowing that buying too much poses limitations that annuities could have for growth. SOLUTION: Weighing the pros and cons of annuities with a fee-only financial planner could help determine if annuities fit and whether there are better options.
ISSUE: Only four in 10 women said they budget and stick to it. SOLUTION: Create a budget with a fee-only financial planner’s counsel and let the financial planner monitor it to provide feedback and encouragement.
ISSUE: Women said they are more likely to feel a need for life insurance than men, but may be unaware of how life insurance plays a role in financial planning. SOLUTION: A fee-only financial planner can help determine appropriate amounts of life insurance and help find low-cost policies, in addition to explaining how insurance could benefit or not benefit a financial plan.
Strategic Financial Planning is experienced in these aspects through extensive work with divorced and widowed clients. Discussing these issues with SFP’s fee-only Certified Financial Planners can help women overcome the challenges that could derail their financial future in the long term.
