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Advisors know that women face a variety of retirement circumstances, some of which are different than what men deal with. For example, a woman married to man has to plan for the statistical probability that she’ll outlive her husband.
Regardless of marital status, women still face a lingering wage gap and while it’s narrowing, lower pay leads to a retirement savings gap. Those are among the retirement issues advisors need to be aware of when working with female clients, but that’s not the end of the list.
Another major issue on the minds of women is how they’ll pay for long-term care. Then there’s the notion that financial conversations are still taboo in many relationships, implying that some women can be left unprepared when their spouses die. Point is women need advisors and the time to establish those relationships is long before retirement. Data confirm as much.
Pay Attention to What Women Say
The National Council on Aging (NCOA) and Women's Institute for a Secure Retirement (WISER) recent published findings from their “What Women Say,” highlight an array of retirement security issues facing women – matters with which advisors should urgently concern themselves.
“Less than half (49%) of women and only one-third of rural women report having saved for retirement,” according to the survey. “Majorities report they are not financially secure, including 79% of low-income women and 67% of rural women.”
Further highlighting the need for advisors to better engage female prospects is that seven in 10 polled by the NCOA say they aren’t confident in their ability to plan for retirement and build retirement savings. That calls attention to other retirement concerns held by women.
“Roughly one-third of all women and half (49%) of low-income women say their retirement income or savings will not be enough to pay their monthly bills—an increase from 2023,” adds the NCOA.
Glimmers of Hope
It’s estimated that helped in part by the great wealth transfer, women will control $30 trillion in assets by 2030. That’s just one data point, but it indicates many women will have the resources to enjoy better retirements than they’re currently anticipating.
That’s good news and it articulates the importance of working a financial professional because financial wellness can be additive when it comes to mental and physical health. Under any circumstances, those are important issues, but they’re top of mind for many women today.
“Women rate their general health worse than their mental health, and low-income and rural women rate their general and mental health a net negative,” concludes the NCOA. Women view having a low-income as the most negative influence on a person’s health.”