Singularly Strong: Unlocking Financial Independence in Retirement for Women

Terri Spath |

Recent statistics show that about 43% of women in the 50-65 year old age group are single, whether due to divorce, widowhood, or choosing not to marry.

For women entering retirement single, it's important to acknowledge and address unique financial challenges that often stem from life circumstances and societal factors.

One big financial hurdle is the investment gap. Women commonly face interruptions in their careers to care for children or aging parents, resulting in reduced or halted income. Additionally, the gender pay gap persists, meaning women generally earn less than men over their working years. These factors contribute to a reduced ability to save and invest, resulting in a shortfall in retirement savings compared to their male counterparts.

Compounding this challenge is the fact that women tend to outlive men. On average, women live about 5 to 7 years longer than men. This longevity means that a single woman may need to stretch retirement savings further, increasing the importance of financial planning and careful investment decisions.

In light of these circumstances, it's crucial for women retiring single to take proactive steps to ensure financial success. Start by assessing your current financial situation and creating a detailed retirement plan. Consider consulting a financial advisor to guide you through investment opportunities and potential strategies to maximize your savings. Take advantage of employer-sponsored retirement plans, individual retirement accounts (IRAs), and other investment options available to bolster your savings.

Education and empowerment are key. Equip yourself with knowledge about financial management, investments, and retirement planning. Network with other women in similar circumstances, and share experiences and advice. Advocate for equal pay and improved opportunities to bridge the gender pay gap.

Women retiring single face unique financial challenges, including the investment gap and longer life expectancy. By taking proactive steps, seeking financial education, and advocating for equitable treatment, women can enhance their financial security and enjoy a fulfilling and comfortable retirement.

Waves happen. We can help.

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Zuma Wealth LLC to provide information on a topic that may be of interest. Copyright 2023.