What Does Your Future Look Like? Here’s A Roadmap To Follow
by Kate Hynson
July 26, 2019 .3 min read
There’s no denying that women are increasingly breaking the mold like never before.
More and more women today are taking on c-level positions in the workforce and more and more women today are holding more private wealth than ever before. In fact, in 2015, 30 percent of global private wealth were held by women1.
So, as we combine this information with the reality that women are statistically known to live longer than men (a little more on this below) and typically earn lower salaries, this brings up one big question.
"How do we (as women) plan to save more than men, for our retirement?"
It's more critical now, more than ever, that we create a strategic plan to catch up to men when it comes to retirement planning.
The average life expectancy of a woman turning 65 in 2017 was 86.6 years old, whereas that of a man was 84.3 years old. If you retire at 65 years old and live to the average life expectancy, this means that you will have to support yourself and potentially others for over 20 years.
So, what does that mean to you?
It just means that knowing what estate planning is and how it could benefit you is paramount. With that, here’s everything you need to know:
Estate planning allows you to learn about your assets and how they’ll be transferred to others when you pass away.
It will also give you a look into what life could be like if you become ill or disabled and need extra care. Simply stated, estate planning allows you to be prepared and prevents you from potential future headaches. It helps you to set up a will, trust, power of attorney, and other vital aspects of transferring your assets.
In 2017, 56 percent of women did not have a trust or will set up and 65 percent of parents with children under 18 didn’t have a will either. If you were one of those 56 or 65 percent, your family would be left to make some very hard decisions amidst grieving their loss.
For example, who would take care of your children? That’s an extremely personal decision that you want in writing.
On top of that, your assets might not end up going where you’d want them to. Estate planning gives you the freedom in deciding where your assets would go.
Who would take your cars? Who would take your pets? These are all some things you want to think about.
Diving a little deeper, know that there is more to estate planning than writing a will and deciding where your assets will go when you die.
Estate planning includes making sure you have a variety of documents and information in order.
Some things that should be covered in your plan is:
the type of life insurance you have,
any retirement account information you may have,
and all necessary information on the home(s) you own.
It’s also key to plan out what life will look like when you’re still alive. For example, what type of end-of-life care do you want to receive? In 2017, 66.8 percent of nursing home residents were women. The average annual price of staying in a nursing home at this time was $74,820. If you enter a nursing home at 80 years old and live until the average life expectancy of 86, you’ll need approximately over $400,000 just in nursing home fees. The more prepared you are for the unavoidable parts of aging, the better you’ll be able to handle the unexpected things like medical conditions or emergencies that pop up along the way.
Expect to live a long life and prepare for it. Planning for your future is imperative, as it doesn’t solely affect you but your loved ones, too. Sit down with a financial adviser and an estate planner to learn more about what might specifically be best for you. Remember, don’t be afraid to ask questions. This is your future and the more you know, the better prepared you’ll be to create the lifestyle that you want to live.
Philadelphia native and Penn State alumna, Kate Hynson, always had a flair for marketing. During her college years, Kate took on several brand ambassador roles and even a President role for the Penn State CHAARG chapter, which held over 275 members. Her ability to command a room and deliver a clear message aligned perfectly with the myWorth mission as we aim to provide clear financial guidance to women on a mission. Through myWorth, Kate has been able to help women feel empowered by fearlessly own their finances.