Retired Women Are More Prone to Financial Crisis

Lower wages and higher medical costs are putting retiring women at greater risk for financial ruin than men, according to a recent survey.

Seventy percent of nursing home residents are women, and the average cost of a private nursing home room is more than $90,000 per year in the United States according to AARP. As well, retired women pay about $600 more per year than men on out-of-pocket health costs.

Many women put their family’s needs before their own security. According to the 17th Annual Transamerica Retirement Survey, half of working women say saving for retirement is a priority, compared to 62% of working men.

Compounding the issue is that women often have less money than men to pay for long-term health care. Women generally earn less than men (79 cents to the dollar) and women spend more time out of the workforce to care for children or aging parents.

To keep themselves safe, one retirement planner said women need to focus more on their health and find advisers who can understand their specific financial needs.

The financial industry speaks the language of risk tolerance and investments, according to the life planning firm, Women’s Worth, stating women need to learn to speak the language of ‘protection and security’ and not to be a financial burden to anyone. Many women want their money to last as long as they do and to be more active than women in the past.

According to Social Security Administration data, a 65-year-old woman can expect to live to age 86.6, compared to an average male lifespan of 84.3. Women need to stretch money to cover a longer lifespan, and in the course of a longer life, they will invariably incur more health care expenses.

The fact is there are very few men sitting around in nursing homes, nursing home residents are mainly women. Women who leave retirement planning to their spouses do so at their own peril. Add that to the fact retirement planning is a fairly new concept for Native American people.

Many of the couples think - she’ll just sell/give the house to one of our children when I die, and she’ll spend less living in a small apartment. What worked long ago, may not work now.

Women need take control of their finances and seek financial help from people who understand their priorities. Women also need to stay on top of preventative care, general wellness and physical fitness. A gym membership now may reduce medical bills later.

Ladies, get your heads out of the sand. You deserve better in the golden years of your life.