Are Women Aware of Their Financial Risks?

Roughly 55% of Americans regret how they handled their retirement planning, women in particular. That’s because being female can bring distinct financial risks.

According to a recent survey from provider Global Atlantic Financial Group, 62% of women had regrets about their retirement planning compared with 47% of men. As a result, more women than men had to adjust their retirement lifestyle. For example, women cut more entertainment expenses (51% vs. 42%) and travel expenses (42% vs. 34%).

One likely reason that women regret their choices more is their tendency to put the needs of others first, sometimes to their own detriment. That is, women don’t save as much as they should because they prioritize paying for a child’s education or caring for an elderly parent.

This causes challenges when it comes to providing for one’s own late-in-life care. Women who find themselves widowed (because they live longer than men, on average) don’t want to be a burden on their children. But they wonder how they will pay for their care into their 90s.

The problem can be solved with careful financial planning. Purchasing a long-term-care policy using equity from a home, or renting out a home that’s larger than your needs, are creative solutions. But it’s important to plan early. The “sweet spot” for obtaining affordable long-term care insurance is age 50 to 70.

If you’re a woman worried about being in this situation, a financial professional can help you develop a long-term plan that accounts for all circumstances.