Written by Alex Seleznev, MBA, CFP®, CFA and Alyssa Neece | Sept 10, 2025
Retirement planning doesn’t always look the same for men and women.
This is a reality that is well documented in research and in my personal observation and experience.
I was recently reminded of this during a visit to one of the local retirement communities.
As I walked through the halls and common areas, I noticed that the majority of residents were women and this wasn’t a new experience for me…
Women face a unique set of financial challenges in retirement that require a different, more proactive approach to planning.
Why is this?
Put simply, they live longer (sometimes much longer) and need a bigger nest egg than their male counterparts.
Even statistically speaking, an average woman is expected to live to age 87 and a man to 83.
This trend is even more pronounced as people get older. For the population over the age of 85, there are 184 women for every 100 men.
So let’s dive into some of the key considerations for women planning for retirement.
Women are the Ultimate Caregivers
Many women find themselves in the difficult position of caring for both their children and their aging parents at the same time.
This "sandwich generation" dynamic can strain their financial resources and limit their ability to save for their own future.
Some of our clients even find themselves in the position of financially providing for their spouses and siblings.
I recently met with one of our clients who wants to help her children with a house purchase and anticipates supporting her ailing siblings in retirement.
As you can imagine, this will likely create quite a strain on her finances if not managed properly and proactively.
Sure, the same dynamic can be experienced by men as well, but it tends to be less frequent, at least in my experience.
Shorter Earnings Window
Due to career interruptions for caregiving, women typically have a shorter window for their peak earning years.
This means they need to save more, save faster and often invest more aggressively.
It’s common (i.e., generic) advice that as people get older, they should play it safe with their investments.
But for many women, that's not the best strategy.
To keep up with inflation and ensure their money lasts, women may need to maintain a more aggressive investment strategy for longer, even in their later years.
I’m, of course, not providing any investment advice here. I just wanted to make you aware of this issue.
Planning for Long-Term Care Expenses
A longer life can be a wonderful thing!
Many of our women clients, friends and family members are enjoying everything life has to offer, well into their 90s.
Embracing life for this long is a beautiful opportunity and one that I hope I get to enjoy as well.
But there is also a big reality to living longer.
For one thing, long-term care expenses will likely be higher, among other factors.
Making sure you don’t outlive your resources for an additional decade (or two!) is no small task and should be a major part of the discussion for everyone, especially for women.
Now, I’m certainly not saying that you should run to get a long-term care insurance policy, even though it can be prudent in some cases.
But you do need to have a plan that addresses your longevity expenses.
Higher Need for Financial Literacy
Almost half of the single women I work with experienced divorce at some stage in their life.
I don’t want to overgeneralize, but in earlier generations it was common for the husband to manage the family finances.
(I’ve been observing a shift in this approach over the past decade or so.)
With divorce, and specifically with divorcing later in life, many women end up fending for themselves without the benefit of years, or even decades, of experience managing their finances.
Outside of divorce, the loss of a spouse later in life can result in the same consequences when it comes to finances.
This is when many fall prey to less-than-ethical financial advisors… but that’s a topic for a different newsletter.
Need for a Stronger Social Network
I recently had a meeting with one of my clients who just turned 89. We will call her Nancy for this newsletter.
Nancy is in great health, relatively speaking, and truly seems to always be cheerful, which may be a secret to her longevity!
What really struck me was that Nancy had outlived not only her husband but also most of her friends and even relatives.
Nancy admitted that it’s been challenging for her to find new friends as, among other reasons, she is not as mobile as she used to be.
Loneliness is one part of the non-financial equation of retirement that you really want to think about, especially for women who expect to live longer.
So what are some practical ideas for you to consider?
Delaying Social Security
Because of the longer time horizon, it could be a smart move for women to delay collecting Social Security until age 70.
This might sound like a long time to wait, but it results in a significantly larger monthly check for the rest of their lives.
Please keep in mind that this decision needs to be assessed as part of your overall financial plan.
To prevent any potential misunderstandings, not everyone should wait until age 70 to collect Social Security benefits, even if their life expectancy is above average.
Bigger Emergency Fund
Long-term care for yourself, caretaking for your siblings and parents and providing financial support for your children as they grow their families.
The costs are adding up!
Being a part of your grandchildren’s lives and possibly helping them with college adds even more to the financial picture.
A great way to meet these ever-present expenses is through adequate cash reserves and other portfolio protection strategies.
Keeping not just 6 months of expenses in cash, but even closer to 12 months, can be a more secure way of taking care of these needs.
This allows you to keep the rest of your funds invested in the market with more peace of mind.
And speaking of being invested in the market…
Stay in the Game
Conventional wisdom is to shift your investment allocation more toward conservative options, such as cash, money markets or bonds.
For women, this may not allow your resources to grow at a pace that matches your longevity.
You absolutely want to preserve your hard-earned money.
But simply put, if you get too conservative with your investing too soon, your funds may not last long enough.
Generally speaking, the funds that you don’t need for 7 to 10 years should be invested more aggressively.
Our “Fortress Financial Plan” approach is one option to securely manage your investments in retirement. If you are interested, check out how it works HERE.
Last but certainly not least, focus more on building your social network and financial education.
It will go a long way toward a long and prosperous retirement!