Women’s Financial Wellness Checklist

2 minute read

To be financially well, especially later in life, involves awareness and in-depth planning. It means being as fully prepared as you can be for the financial challenges and risks you’re likely to face.

As we age, the physical, behavioral, and cognitive threats to our financial well-being increase. Poor physical health, memory loss, cognitive decline, overconfidence, and loneliness, among other factors, can all contribute to poor financial decision-making.

Almost a third of Americans 50 or older underestimate their life expectancy by five years or more, according to a recent study by the Society of Actuaries. And keep in mind that, as you grow older, the more likely you are to continue to live a longer life.

Women face unique challenges that make planning for this later phase of life critical:

• Wage gap – During their working years they earn 82 cents of every dollar their white male peers earn which leads to lower savings (2021 World Economic Forum Study)
• Work gap – Women also have fewer years in the workforce due to caregiving for children and older relatives. This also takes a toll mentally as well as physically
• Higher health costs – When women are older, their healthcare costs are also on average higher than men
• Longer life expectancy – Women on average live 2-3 years longer than men which adds an increased burden to make sure their money lasts longer
• Uncoupled – There is a 63 percent chance a woman will outlive her male partner by an average of 12 years (2018 NBER Study)

A Financial Wellness Score can help you identify threats to your financial wellbeing. Once you have a clearer picture of your state of financial and retirement security, it will help you better plan for your future.

It’s never too early to know how your financial wellness looks. Hiring a financial professional can be a great way to do a check up to see where you stand. People who take these steps will find that, as they age, they are in a much better position to help themselves and their families.

Questions women should ask a Financial Professional to assure they are the right resource to ensure financial wellness:

• What percent of your clients are women? Married, single, divorced, or widowed?
• What are the best ways to help me maximize my savings?
• How do you help clients project their healthcare costs?
• What types of disability polices do you offer?
• What types of Long-Term Care policies do you offer?
• How can you help me with my Medicare election?
• What eldercare planning and caregiving resources do you offer?
• How can you help me organize my estate planning?