Patti Fagan, Medicare Specialist

Being a financial advisor requires that I do massive amounts of reading in order to stay abreast of personal financial and economic trends and issues that my clients may face. Which means I am continually inundated with the reality of the state of our economy.

Quite frankly, it is a gloomy picture, especially for women.

Let’s face it, throughout history women have been getting the short end of the proverbial stick, especially in the area of financial security.

For instance, women are painfully aware of the pay gap that exists between the genders. Yes, in some sectors, men still earn more than women when working in the same professions. At the same time, more and more women are out-earning their husbands and they are opening new businesses at a rate that outpaces men. Yay for us!

While these advances are encouraging, I urge women not to take their eye off of the real issue here, which is that women face a number of financial challenges in retirement.

A number of social and economic factors threaten the financial security of women, especially in retirement.

Statistically speaking, women outlive men. Not only because men tend to marry younger women, but because women live longer. Which means that if the husband requires extensive (and expensive) medical care before he passes, the wife will be left with depleted savings to live on.

By the way, financial experts are saying that retirees should plan on spending approximately $240,000 on healthcare costs. Yikes!!!

Not only are healthcare costs rising, but people are living longer, too.

Centenarians are the fasting growing age segment of our society.

The average age a woman becomes widowed is age 59 ½. So, if she lives into her nineties (or to age 100!), she will need at least thirty years of retirement income saved up.

Women need to protect themselves from longevity risk.

So, how can a woman prepare for the economic storm ahead and ensure she enjoys a financially secure retirement where she will not outlive her money? In a word…..

Planning.

No matter what age you are now, you’ve got to stay on top of your plan to not run out of money in retirement.

Read my article: How to not run out of money in retirement

If you’re single, please don’t stick your head in the sand. Nothing good ever comes out of procrastinating. Especially when it comes to finances.

And, if you’re married, don’t fall into the trap of thinking that your husband has it all taken care of. Men don’t understand the longevity risk we women face. No one will take better care of your financial wellbeing than you.

It doesn’t matter how much money you have. I have clients who have managed to save plenty of money on annual salaries of $40,000. Conversely, I’ve had six-figure income earning clients who never had a savings plan before they met me. Your level of income doesn’t matter. The important thing is to make what you do have last for as long as you do.

Let me know how I can help.

Are you concerned about making your money last your lifetime and not losing principal? Call me at (800) 823-2955 or (831) 238-9097.

Or simply submit your question below and someone from our office will be in touch shortly.

Tweet
Share
Pin
Share