It’s common for women in their sixties to feel insecure financially as they approach retirement. It’s stressful enough to plan for retirement, facing additional challenges is even more depressing. Among the many things that make a comfortable retirement difficult for women whether they are single or married are their longer lifespans, gender pay gap, and the high amount of time they spend in the workforce.
To help us understand the biggest concerns women face in their finances during retirement, let’s have a look at the 2019 study conducted by the NCOA/Ipsos.
Most women may already know this but for those who don’t, did you know that more than half (56%) of women aged 60 and older are worried about health care costs? The cost of prescriptions outpacing their retirement savings is one of the biggest worries for 43% of women. A survey conducted by the “Health and Finances Top Concerns of U.S Seniors” says that women are more concerned than men.
When it comes to retirement, women may feel the compounding effects of the income gap. If a woman earns less, it means she gets lower retirement account balances. As a result, women are more insecure financially when compared to their male counterparts.
Women on average earn less than men plus, the opportunity costs of being mothers and caregiving for an aging parent, also affects their finances. It’s true that the balance of housework has improved over the past decades, but the burden still falls more on women.
It was discovered by NCOA/Ipsos survey conducted between May 29, 2019, and June 14, 2019, that among 1,227 adults aged 60 and older, their top concerns for retirement. They are more worried about the ever-rising cost of health care and prescription drugs and a loss of independence as well as a direct threat to their secure retirement.
Here are a few breakdowns of the study in terms of healthcare cost concerns among women:
• 56% of Americans aging 60 and older regardless of gender are concerned about the costs on health care exceeding their retirement income.
• 68% of Americans aging 60 and older and with incomes in their household below $50,000 are scared.
• 60% of women aging 60 and older are concerned about their costs on health care exceeding their retirement income.
The survey showed 65% of Americans aging 60 and older regardless of gender are concerned about losing their independence while those who worry about becoming a burden to their families are nearly half at 46%. For women, 59% of them age 60 and older are worried about losing their independence.
Working on your own health before there is a crisis is probably the main lesson we can get out of this. It’s always best for you to avoid having a heart attack rather than recover from it. You will be able to avoid or minimize illnesses such as diabetes, cancer, and others just by proper diet and moderate activity.
More than 12% of men, 52% of women, aged 60 and older are worried about becoming a burden to their families.
Consider purchasing long-term care coverage for yourself if you have the ability and assets to protect. You can typically get coverage for long care when you purchase a life insurance policy as a living benefit as well as benefits that kick if you need home health care or suffering from a severe illness. If you have a heart attack, stroke, or any other critical illness, you may be able to receive other benefits covered by your specific policy.
Around 10,000 people are estimated to turn 65 years old each and every day in America. More people will, therefore, be forced to face their own insecurities with retirement planning. Admitting it can be frustrating but you will retire whether you like it or not regardless of your current age. Make sure you improve your chance of reaching financial freedom and having a secure retirement by taking steps today. There is still time to improve your prospects of a comfortable retirement even if you are starting your retirement plan in your sixties.
CONTINENTAL TAX AND ACCOUNTING SERVICES