The Glass Half Full for Females Facing Risk in Retirement

The Glass Half Full for Females Facing Risk in Retirement article image

Thoughts provided by Catherine M. Seeber, CFP®, CeFT®, Vice President and Financial Advisor at CAPTRUST with a special concentration for those individuals facing a life transition (divorce, widowhood, retirement…) located in Lewes, DE.

It’s not all doom and gloom as the gap is shrinking every year as it relates to the gender pay gap. Although a recent study by ADP Research Institute found that the wage gap between men and women still exists (women earn 79% of what me are paid) women are more likely to save than men, and they’re saving a higher percentage of wages. According to Ahu Yildirmaz, head of the institute, financial advisors and other institutions have apparently made an impact in raising awareness among women about the importance of saving.

What else has caused women to save more? Is it the fear of ending up alone or dependent? Is it the changes in health-care laws? Or is it simply that they are learning to enjoy the process of accumulating wealth and achieving success without the guilt and fear they traditionally experienced?

Regardless, female vulnerability is a difficult concept to plan around. But there are specific techniques that can be used to narrow a female’s risk of outliving her assets.

• Start saving now and stay healthy!

• Invest in their own human capital by taking classes to remain relevant in their careers;

• Ensure that they are taking full advantage of their company retirement plans by maximizing contributions or contributing to an after-tax savings account;

•If they are married, become more involved in their financial matters;

• Also if they are married, have a professional advisor run a capital needs analysis to ensure they are adequately protected if they lose a spouse;

• Have their long-term projections stress-tested by assuming they will have longer life spans with increased health-care costs; and

• Shower themselves with resources when they are helping their children and aging parents financially.

You will find that women are more apt to discuss their health and family before they talk about their financial affairs. It’s best to begin a comfortable dialogue with a certified financial planner about money.

In one of my most recent women-centric client events, one of the questions posed was, “What keeps you up at night?”

Surprisingly, lack of money was not the primary response, but lack of control. Because most of us do not like feeling unbridled, we tend to ignore the emotion. But without proper planning, most fears become fact. Females need financial mentors; thinking partners. This enables them to approach finances in a more positive way. It takes a keen awareness of these vulnerabilities, some planning and a little discipline. Women can break through these barriers with the right planner, the right tools and the right attitude.

Catherine M. Seeber, CFP®, CeFT® Vice President | Financial Advisor Catherine.Seeber@captrust.com CAPTRUST | Southeast Region 800.216.0645 (ext. 25157) | 919.870.8891 fax | 302.740.2432 mobile www.captrust.com | www.captrustdirect.com