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Planning for Retirement as a Single Woman
Friday, September 4, 2020

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The Unique Retirement Challenges of Single Women

Overcoming Financial Insecurities and Anxieties

Many people struggle with questions and anxieties regarding their retirement. 

Will I have enough money? 

What will my medical care needs and expenses be?

Where will I live? 

For single women—women who are single by choice, divorced, or widowed—those questions and anxieties can be tenfold. Much of their anxiety is due to financial insecurities, which are far more prevalent among single women than married women. As an example, according to research from the LIMRA Secure Retirement Institute, nearly half of single women retirees are fearful of running out of retirement savings if they live past the age of 90.

In addition, a study done by the Employee Benefit Research Institute (EBRI) found that single women were less confident regarding retirement than married women. They were also more likely to have fewer resources and be less prepared for retirement. Consider their findings:

  • Only 43 percent of divorced women and 51 percent of never-married women are very or somewhat confident that they will have enough money to live comfortably throughout their retirement years.

  • More than half of divorced women retirees and nearly a third of widowed women retirees have less than $1,000 in savings and investments.

Those findings are troublesome, as many women are approaching retirement with a significant lack of financial knowledge and security. If you are a single woman and these findings ring true for you, you may be asking yourself if it is too late to change course and take control of your retirement. 

The answer is no. Consider this an opportunity to begin taking tangible steps to retire with confidence. Start with the following action items:

Recognize that your financial anxieties are not uncommon.

Financial anxiety is high among single men and women alike. A Planning and Progress Study from Northwestern Mutual several years ago found that, overall, “single men and women are generally less satisfied with their financial circumstances than married Americans.” This is a reality for many. If you accept it, you can then take active steps to relieve your anxieties.

Understand your worth.

It is okay if you need guidance and support in discovering your financial worth. You may choose to find a financial advisor or work with someone at your bank or place of employment. You need to ask questions and gain insights that help you understand where you are going, what you are doing, and what to invest in. 

Remember that knowledge turns worry into confidence.

It is only with information that you can be empowered to take control of your financial planning outcomes. As you find advocates among your friends, family, and community, you can begin to develop a financial plan. 

Work with a certified financial planner.

Most of us, especially as we grow older, need some financial professionals in our corner. Investing in the consultation and support of a certified financial planner can be extremely beneficial. Financial planners understand the market and different opportunities available, and they can help you determine the best path to retirement. 

We hope these tips offer you some guidance on how to best retire as a single woman. Remember that in the Cleveland community, there are specific programs—like McGregor PACE—that offer an affordable alternative to other assisted living or retirement communities. If you would like to learn more about PACE and how to determine your PACE eligibility, please do not hesitate to contact our team.

LEARN ABOUT PACE

 

Information for this article was sourced from:

FA Advisor

insurancenewsnet.com


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