The Financial Challenges of Women

As financial planners, our mission is to guide individuals and families through life’s transitions. While the foundational principles of setting goals, saving diligently, and maintaining a long-term perspective are universal, each person’s journey is unique, especially for women who face distinct financial challenges.

Balancing Family and Career
Women often juggle multiple roles, leading to career interruptions for caregiving responsibilities. Recent data indicates that 59% of family caregivers are women, with many providing up to 20 hours of unpaid care weekly. This commitment can impact their career progression and earning potential. 1

Financial Implications of Divorce
Divorce can have a profound financial impact. Studies show that women who divorce after age 50 experience a 45% reduction in their standard of living, compared to a 21% reduction for men. This disparity underscores the importance of proactive financial planning.2

Longevity and Retirement Planning
Women’s longer life expectancy—averaging five years more than men—may require more extensive retirement savings to ensure financial stability. However, with lower lifetime earnings and career breaks, women often receive reduced Social Security and pension benefits. At age 67, men receive an average monthly Social Security benefit of $2,101.74, while women receive $1,861.62, creating a significant gap over time.3 This longevity may increase the likelihood of outliving savings and needing long-term care, making it crucial for women to prioritize early retirement planning, maximize benefits, and seek financial guidance for a secure future.

Taking Control of Financial Futures

Given these unique challenges, it’s crucial for women to:

• Start Investing Early: The power of compounding can significantly enhance retirement savings over time.

• Engage with Financial Advisors: Professional guidance can help navigate complex financial landscapes, set realistic goals, and develop strategies tailored to individual circumstances.

• Plan for Contingencies: Life events such as medical issues, divorce, or the death of a spouse can have significant financial and emotional impacts. Having a comprehensive financial plan can provide stability during these times.

By addressing these factors proactively, women can work towards achieving financial independence and security throughout their lives.

1. Family Caregiver Annual Report and Statistics, Seniorliving. 2025
2. Divorce Statistics Over the Decades: What’s Changed in 2024, Women on Goard. 2024
3. The Average Age of Social Security Check By Age, Kiplinger. 2024