With most women outliving their spouses, this puts them in a position where they will be required to manage their own finances. Recent reports show that women are not as open as men about discussing money. Many lack confidence or feel ill-equipped when planning for long-term care and managing investments. In Texas and elsewhere, women will spend more than $190,000 on health care during retirement.
A real sense of urgency kicks in when retirement is on the horizon. Since women often earn less than men, lower wages coupled with breaks in careers can often put them at a financial disadvantage. To avoid struggling during one’s golden years, one should take the time to talk about money and get a handle on finances. A consultation with an attorney who is well versed in estate planning and long-term care, as well as a financial advisor, can help navigate obstacles to meet financial goals.
For those who are still working, now is the time to build up retirement savings. Company 401(k) accounts are a great way to save for retirement, and annual contributions can be as high as $18,500. For most, the maximum contributions will be hard to meet, but an increase of just $100 monthly could boost retirement savings by $50,000 over 20 years.
Experts advise becoming familiar with retirement health care costs before the need arises. It may be possible to secure reduced premiums on long-term care insurance while still young, and these policies could help defray high medical costs later in life. For women in Texas and other states, discussing finances now rather than later can ease one’s mind and help formulate a solid, secure and comfortable retirement plan.
Source: fool.com, “61% of Women Would Rather Talk About Their Own Death Than Money — The Motley Fool“, Maurie Backman, May 22, 2018