The Unique Needs of Women Investors: A brief summary
At age 65, average life expectancy is 18 years for American men and 20 years for women. Approximately 30 percent of women and 20 percent of men will survive to age 90. (a) National survey data and simulation studies suggest that middle income households have not saved enough to meet all expected retirement expenses: Women have lower savings, lower private pension coverage, and depend more heavily on Social Security for retirement income. Women are more likely to live longer and to be alone. Widows are exposed to the additional risk that household resources are depleted by their spouse's healthcare costs. (a)
Loss of a spouse:
Because women have longer life expectancy and traditionally have married older men, periods of widowhood of 15 years or more are not uncommon. For many women, the death of a spouse results in a decline in standard of living. Women are much more likely to be alone in old age, and old women are more likely to be poor. For those over age 85, 45 percent of the men and 85 percent of the women are widowed.
Healthcare and medical expenses:
A 2014 study estimates that healthcare costs for a retired couple could amount, on average, to $220,000 over their retirement, not including long-term care expenditures: The median annual cost of care ranges from $40,000 to $80,000, depending on the level of care needed. This implies that lifetime costs can amount to $1 million or more for some couples. Healthcare costs may affect women more then men because they have lower income but are exposed to similiar medical costs. Women are less likely to have employment-based retiree medical benefits. (b)
(a) Social Security Administration, 2010 Period Life Table; Baitelsmit, Foster and Rappaport (2013) (b) Kaiser Family Foundation, " Medicare's Role for Older Women" (2009): http://kff.org/womens/health-policy/fact-sheet/medicares-role-for-older-women.
We at Reinemann Financial intimately understand these issues and we seek to educate and address these concerns.
"Women think of money as a family affair, that it's there to help the entire family, and don't think of it as satisfying their needs "
Ginita Wall, Author, It's More Than Money, It's Your Life