Financial planning can be daunting for anyone, but women often face unique challenges due to societal, economic, and personal factors. These challenges can create significant hurdles to financial stability and long-term security. Below are four of the top financial planning concerns women face and actionable strategies to address them.

1. Longer Lifespans and Retirement Savings Gaps

Women generally live longer than men, meaning they need more savings to support a longer retirement. However, women often save less due to lower lifetime earnings and caregiving responsibilities that interrupt career progression.

What You Can Do:

Start Saving Early: Leverage the power of compounding interest by contributing to retirement accounts as early as possible.

Maximize Employer Benefits: Contribute enough to employer-sponsored retirement plans to take full advantage of matching contributions.

Diversify Investments: Work with a financial advisor to create a diversified investment portfolio tailored to your risk tolerance and retirement goals.

2. Balancing Family Responsibilities with Career Growth

Women are more likely than men to take time off work to care for children or elderly family members. These career interruptions can lead to lost income, reduced retirement savings, and limited career advancement.

What You Can Do:

Plan Ahead: Discuss caregiving responsibilities with family members and create a budget that accommodates potential income changes.

Leverage Flexible Work Options: Seek employers that offer remote work, part-time schedules, or job-sharing opportunities.

Consider Life Insurance and Estate Planning: Protect your family’s financial future with appropriate life insurance coverage and a well-structured estate plan.

3. Underrepresentation in Financial Literacy and Investing

Studies show that women are less likely than men to feel confident about financial decision-making and investing, despite often achieving comparable or better investment returns when they do invest.

What You Can Do:

Educate Yourself: Take advantage of free financial literacy resources, online courses, and workshops tailored to women.

Start Small: Begin investing with a modest amount and gradually increase contributions as you become more comfortable.

Join Investment Groups: Engage with women-focused investment communities to learn and share experiences.

4. Health Care Costs and Unexpected Expenses

Women typically face higher health care expenses over their lifetimes due to longer lifespans and unique health care needs. Additionally, unexpected life events like divorce or illness can derail financial plans.

What You Can Do:

Build an Emergency Fund: Aim to save three to six months’ worth of living expenses to cushion against unexpected costs.

Invest in Health Insurance: Ensure you have comprehensive coverage and understand your policy’s terms and benefits.

Prepare for Life Changes: Seek legal and financial advice during major life transitions, such as divorce or the loss of a spouse.

The Key

The key is to start today. Small, consistent actions over time can lead to significant progress and peace of mind. Remember: Financial empowerment is not just about numbers; it’s about gaining the confidence to make informed decisions and take control of your future.

Stacy Bush is with Bush Wealth Management. This information should not be construed by any client or prospective client as the rendering of personalized investment advice.  For more information, please visit BushWealth.com for our full disclosures.