Women and Longevity
Women statistically live longer than men, and this reality has significant financial, social, and lifestyle implications. Understanding these differences is critical for making informed retirement and life-planning decisions.
According to the Centers for Disease Control and Prevention (CDC), life expectancy at birth in the United States is 81.4 years for women compared to 76.5 years for men. This longevity gap persists later in life as well. At age 65, women are expected to live an average of 20.8 additional years, compared to 18.4 years for men. [cdc.gov] This difference in lifespan means that women must often plan for longer retirement periods and extended financial independence.
Financial Implications of Longevity
In addition to longevity issues women can also face financial challenges:
- Women typically earn less than men over their lifetimes
- They are more likely to take career breaks to care for children or aging parents
- These factors often result in lower lifetime savings and reduced retirement assets
As a result, women frequently face the dual challenge of needing more financial resources while having accumulated less. Because women are more likely to outlive their spouses, they may spend a significant portion of later life living alone. For women, a longer lifespan increases the probability of needing long-term care (LTC) services at some point. This makes long-term care planning a critical component of retirement preparation.
What Drives Longevity
Longevity is influenced by a combination of factors, including:
- Genetics and family history
- Medical advancements
- Social engagement
- Diet and nutrition
- Exercise habits
- Lifestyle choices
- Environmental factors
Understanding and actively managing these factors can improve both lifespan and quality of life.
Planning Considerations for Women
Given these realities, women should take a proactive and personalized approach to financial planning.
Key considerations include:
- Saving aggressively during working years
- Planning for potential career interruptions
- Preparing for longer retirement horizons
- Considering the likelihood of living alone later in life
- Addressing long-term care needs
In addition, demographic shifts—such as having fewer children—may reduce the availability of family members to serve as caregivers or Power of Attorney agents. This increases the importance of formal planning.
The Importance of the Right Advisor
Because of these unique challenges, working with the right financial advisor is essential.
Women should seek an advisor who:
- Understands their specific needs and life circumstances
- Listens carefully and respects their perspective
- Focuses on comprehensive planning, not just investments
- Acts as a fiduciary in all circumstances and prioritizes their best interests
A fee-only fiduciary advisor can help women align their finances with long-term goals and make decisions that reflect the realities of longer life expectancy.