A recent survey has indicated that elderly women could be more susceptible to financial problems. Experts believe it could be attributed to the lower wage women receive compared to men, but also to higher medical costs. Therefore, it is more likely for elderly women to feel the sting of the financial crisis, so women looking to retire early, may need to make additional preparations.
Considering that more than seventy percent of nursing home residents are women, and the fact that the average cost of a private room amounts to more than $90,000 a year, women can encounter serious costs after their retirement. Studies have also shown that retired women pay $600 more on out-of-pocket health costs compared to men, which could be another reason why many elderly women encounter financial problems down the line.
The kind nature of women could also be a disadvantage, as stated by Debra Whitman, the Chief Public Policy Officer of the AARP. Only 50% of working women stated their retirement savings are a priority, while the other 50% puts the needs of their family first. Working men on the other hand, seem to prioritize retirement saving more, since the survey indicated 62% is focused on their retirement savings.
Naturally, the known wage gap between men and women also plays an important role. It is known that many women earn less than their male equivalents. Women also spend more time outside of work to look after their children and their ageing parents, which makes the difference in available retirements funds between men and women ever greater.
The average life-expectancy of women in the U.S. is longer than the average man as well, more specifically 84.3 for men and 86.6 for women. Since women live longer, they need additional funds to cover their healthcare expenses. Therefore, retirement savings should match the increased life expectancy. Unfortunately, this is hardly ever the case.
Many women are not responsible for their own retirement savings as well, since most of them leave this important task to their spouse. While some spouses may be excellent retirement savers, there are those who believe that their partner may simply spend less or sell the house when they die. So, some retirement funds leave much to be desired.
To avoid financial problems in the future, it is essential for women to take control of their financial lives while they are still working. Even though adjustments can be made once they retire, changes made to retirement savings and the financial status of the woman in question can make a big difference somewhere down the line.
In addition to saving for their retirement, the working woman must also consider other important factors that could have an impact on their financial situation; this includes preventative care, general wellness and physical fitness. If women take excellent care of themselves now, instead of putting everyone else first all the time, they could be saving a lot on their medical bills when they get a little older. In conclusion, taking control of your own finances and taking good care of yourself are the cornerstones of financial stability in the future.