A Practical Financial Checklist for the Future

When our parents retired, living to 75 amounted to a nice long life, and Social Security was often supplemented by a pension. The Social Security Administration estimates that today’s average 65-year-old female will live to age 86.6. Given these projections, it appears that a retirement of 20 years or longer might be in your future.^1,2

Why a middle-class woman may end up less ready to retire than a middle-class man.

What is the retirement outlook for the average fifty-something working woman? As a generalization, less sunny than that of a man in her age group.

You must avoid it. Think about tomorrow, not just today.

No woman wants to end up a “bag lady” – impoverished, out of options, left to fend for herself on the streets. Only a tiny percentage of women from affluent households will experience this retirement nightmare, but that does not mean the risk should be dismissed.

Contending with the possibility of widowhood...

On average, women outlive their husbands. According to the Social Security Administration’s estimate, the average 65-year-old woman will outlive the average 65-year-old man by more than two years, dying at age 86½. Averages aside, it also estimates that about a quarter of today’s 65-year-olds will live into their nineties. Around 10% will live to age 95 or beyond.¹

When your marital status changes, your goals and plans change too.  It may be the first time in a long time when you get to plan around exactly what you want.  When that happens, it is time to revisit your investment strategy.  Are you on the right track or has the divorce derailed your plans?  Our team is here to help you determine what investments are best suited to get you or keep you on track to achieving your new goals. 

If your divorce involved minor children, planning gets more difficult.  You will obviously be concerned about their college goals and financial future as well as your own. Our professionals will advise you on the best ways to work with your assets and plan so no goal gets forgotten.

As your marital status changes, so does your tax status.  Without proper planning, you could unknowingly end up paying more in taxes when you start filing single as opposed to married.  Working with a team that can plan around this can save you in both money and headaches.  This can be especially important if you own your own business.

After a divorce, the plans for retirement are apt to change. It is a well-known fact that women have a longer average life expectancy than men by five to seven years. Living longer with half the resources can be very scary.  It is a smart move to talk with a trusted professional about the impact of the divorce on your retirement plans as soon as possible.  Our financial team will discuss your options and help you make the adjustments necessary so that you can focus on the more immediate issues, like starting fresh.

Whether the process was amicable or riddled with conflict, the financial effects of the marital split can have a long term impact. Our financial professionals are available to help you meet each of these potential challenges and make sure your fresh start gets off on the right track.