How Women Can Prepare For Retirement

Retirement looks much different today than it did for past generations. With women living longer than ever, retirement could last 20, 30, or even 40 years. The Social Security Administration estimates that today’s average 67-year-old woman may live until age 88, while the Society of Actuaries suggests nearly half of women who reach 65 have a good chance of living past 90. Given these projections, planning for long-term financial security is essential.

Are You Ready for a Long Retirement?

Ensuring financial stability for a decades-long retirement starts with asking the right questions:

• How will you draw income from your savings?
• What additional income streams can supplement Social Security?
• How can you protect your assets and maintain financial security?

Work With a Financial Professional

A knowledgeable financial professional can help navigate the unique challenges women face, such as income gaps, career breaks for caregiving, and financial adjustments following divorce or widowhood. A personalized strategy can help create a solid foundation for your retirement years.

Balance Growth and Protection in Your Investments

As retirement nears, managing investment risk becomes increasingly important. While protecting assets is crucial, a well-balanced strategy should also account for potential growth to support a long retirement. Understanding your risk tolerance and financial goals is key to ensuring your money lasts.

Plan for Extended Care Needs

Women tend to live longer than men and may require long-term care at some point. Medicare only covers short-term skilled nursing care under specific circumstances, so additional coverage, such as long-term care insurance, can help protect assets and reduce financial stress if care is needed.

Optimize Social Security Benefits

Delaying Social Security can significantly increase monthly benefits. For every year you wait beyond your full retirement age (up to age 70), your benefit grows by approximately 8%. If you can afford to delay, this strategy can provide greater financial stability in later years.

Retire With Confidence

With proper planning, you can build a retirement strategy that aligns with your unique goals and provides a roadmap for the years ahead. Working with a financial professional can help you navigate the complexities of retirement planning and ensure you're well-prepared for the future.