What Women Should Know About Retirement Risks and Their Estate Plan

What Women Should Know About Retirement Risks and Their Estate Plan 

Women have come a long way. Unfortunately, there are still some topics that are considered taboo. One of those topics is estate planning. It is not morbid to think about the future, your retirement, or what you want to do with your assets when you are no longer around. 

Traditionally, estate planning was a male-dominated field. The male head of the household was the breadwinner, and he made decisions about what happened to that money. That is no longer the case.

At The Law Offices of Stephanie D. Hon, we want to empower women with information about how to make smart financial decisions about their future. Whether you are single or have a family, retirement and estate planning are crucial. We want to dive into what women need to think about when it comes to retirement risks and their estate.

Retirement Risks and Estate Planning 

A lot goes into planning your retirement and sorting out your estate. It can feel overwhelming, and when something feels overwhelming, we tend to put it off, especially when it is something that may not impact us for years to come. Unfortunately, that is the wrong attitude to take about laying out your retirement and estate. You need to confront challenges head-on to plan for your future. Here’s what you need to think about:

Women Tend to Outlive Men 

If you have a family, you need to think about your family dynamic. Statistically, women outlive their male counterparts. In developed countries, women tend to live to 79 while men only live to about 72. This gap can make a difference in how you plan your retirement strategy. Assets will need to be assessed and allocated in a way that accounts for a woman’s long-term health care costs and potential home care needs.

Additionally, the woman may be left to administer joint wealth of the estate after her spouse’s passing. Estate administration can be a tough job without a sound estate plan in place that accounts for allocating assets to heirs, addressing tax exemptions, and managing pensions.

Gender Inequality 

For all the progress women have made, there are still hurdles to overcome. It is an unfortunate reality that women are still paid less for their work than men. On average, women in the U.S. earn only 84 percent of what men earn. Over the lifetime of a woman’s career, that can amount to a great deal of lost wealth when it comes time for retirement. While you work just as hard, you make less but live longer. That makes solid retirement and estate planning crucial to ensure you have enough money to get you through your golden years.

Women May Have to Take on Other Roles 

Many women are still traditionally thought of as caregivers. If you have children or plan to have children, there is a greater likelihood that you’ve taken time off to give birth or have gaps in your employment history to care for children or even parents in their old age. While you’ve been working hard, this caregiving time is seen as time away from the traditional workforce. You may not be saving as much or contributing to retirement accounts. Yet, you still need to protect yourself and your future.

Contact a Personal Family Lawyer  

Need help making critical personal and financial decisions? Turn to Stephanie Hon and the asset protection planning team at The Law Offices of Stephanie Hon. We want to provide you with solid financial and estate planning to help you move into the future with a sense of positivity. Call our office at 512-888-9378 or contact us online today to get started.