Retirement Planning for Women: Unique Considerations for Women’s Retirement

Retirement for women often looks different than for their male counterparts.

On average, women are retiring two years earlier and living three to five years longer than their male counterparts. While many elements surrounding longevity are ultimately out of your control, you can take steps to be financially prepared for both the expected and the unexpected. And as a woman, there are some unique considerations you should be aware of when planning for the years to come.

Women’s retirement – by the numbers

When it comes to retirement for women, women have roughly 30% less saved for retirement than men, translating into more than $400,000 of savings lost over the course of their career. Even if retirement seems far off in the distance and may not currently be a top-of-mind issue, when speaking in terms of sheer dollar amount alone, retirement is a topic that shouldn’t be ignored at any stage of your life. Whether you’re in your 20s or 50s—married, single, divorced or widowed—defining your financial goals now is critical to allow you to retire comfortably when the time comes.

Be well-informed on all aspects of retirement for women

When it comes to retirement for women, as they say, the future is yours. And when it comes to money for retirement, financial knowledge is power—especially for women.

While no one knows exactly what the future holds, one thing is certain—life happens. You can hope for the best, but by planning and preparing for the unexpected, you can make even difficult times less stressful. This is solid financial advice for anyone, but as a woman, you may want to consider how the following questions could uniquely impact your financial future:

1. Do you feel well informed about you and/or your partner’s retirement accounts? Are they consolidated into one account or many?
2. Who’s named as a beneficiary on your and/or your partner’s retirement accounts, if anyone? Are you in agreement with any beneficiaries listed?
3. Have you taken time away from your career to raise your family? If so, you may need to play a bit of catch-up. The good news is, if you’re over 50, the IRS allows you to make larger catch-up contributions to your 401(k) and IRAs to make up for lost time.

If you feel uneasy about any of these questions, it might be time to have a conversation with your partner and/or your financial team to answer your questions and ease any fears. Ask for clarification on complex topics, request to review paperwork and take the time you need to make decisions that impact your financial future. If you’re well informed, you’ll feel more financially confident as you approach retirement.

Unexpected life transitions are difficult enough without layering in financial complexities. Being well-informed on your historic, current and future finances—along with thoughtfully planning for the long term—can ease some of the stress you may experience so you can focus on what’s important—yourself, your family and other loved ones.

Saving for retirement is a marathon, but you don’t have to run it alone

Saving for retirement as a woman (or a man) is a marathon, not a sprint. But if you can imagine it and put a solid plan in place, you can achieve it.

Thinking long term when discussing goals for retirement is key to driving your retirement saving strategy. Ask yourself, how do you want to spend your golden years? Do you want to pack up and snowbird away from the sometimes unforgiving Midwestern winters? How do you feel about downsizing your family home? Or will you prefer to make the transition to a retirement community? And what about travel? Do you plan to enjoy traveling either domestically or internationally?

All these questions and more will help define your unique path to saving for retirement as a woman. And being able to envision your retirement now with clear answers can help make your dreams reality.

But often the future is hard to imagine, and the questions aren’t so easy to answer. This is why connecting with the right financial professional is a critical part of your marathon toward retirement. A financial professional who doesn’t understand your goals will keep you second-guessing your strategy and might leave you to wonder what could have been. A financial professional needs to understand who you are and where you want to go to help guide you every step of the way.

The importance of goals-based financial planning

A comprehensive goals-based retirement savings plan can often be the key to achieving a retirement that checks off every adventure on your bucket list.

Financial professionals from Associated Bank Private Wealth value the unique objectives of all our clients and understand that a one-size-fits-all approach helps no one. Starting with careful listening, followed by insightful questions allow our experienced financial professionals to get to know you and your family. This personal approach to wealth planning helps us build a highly personalized plan that we can help execute, monitor and adjust as needed. We recommend an annual review of your financial plans—but if you’re closer to retirement, or experiencing many of the unique situations women planning for retirement encounter, more frequent meetings may be beneficial.

Take the next step toward retirement planning

Regardless of your path to retirement, you’ll eventually find yourself there. That’s the thing about aging—though we try, we can’t stop it from happening! Knowing that, we might as well be prepared. Asking questions, advocating for yourself and being well informed about unique retirement planning considerations may make all the difference in how you experience your retirement years.

By building a relationship with a team of financial professionals who understands your unique goals, provides you with an outline for financial success based on your objectives and helps you navigate life’s curveballs, you’ll be prepared to enjoy your present and your future.