Wonder Women: Wife, Mother, Caregiver, Daughter, Care-receiver, Aging alone.

The Women of today leads a life that is vastly different from their ancestors and even their mothers. Majority of them have a career and are taking home decent salaries. As a result, they understand money in many areas that older generations of women did not. However, there are still similarities between women of the past and now. And that is there is still a significant shortfall in most of their retirement blueprint; the shortfall of covering themselves and their spouses (if they are married) against long-term care risk.

Wonder Women: Wife, Mother, Caregiver, Daughter, Care-Receiver, Aging Alone.

I cannot emphasize hard enough on the importance of long term care in the retirement portfolio of Women. Simply looking at the premiums of long term care insurance for women and men, we are actually given subtle cues by the actuaries on how they view the longevity of men and women that may have a momentous effect on a woman’s financial future.

According to my personal opinion, Women are:

Probably living longer than men and becoming a widow at some point in time

Probably going to live alone during the last lap of their lifetime

Probably going to take on the role of Care-giver to the minor and elderly in the family

Probably going to drop in and out of the workforce due to these commitments

Probably likely to have utilized their assets to provide spousal care and eventually spending the rest of their lives in a costly long-term care facility. 

The aforementioned factors will come into play as women age. Judging from a longevity standpoint, women are the winners — yet at the same time they have more uncertainties about their longer life that renders them more vulnerable.

If we look around, we can’t help but notice women often marry men who are older, and subsequently outliving them. In some instances, women may also need to be the caregiver for their own or their husband’s parents. Consequently, these roles will take a toll on the women’s own health and they will be drawing down their hard-earned money for medical care during retirement. The chances are, women who become widowed or divorced will end up staying alone, without family members by their side when care is required. Matters are made worse when they have lesser money available to provide for their own care. The truth is, age and chronic conditions are intertwined, long term care needs can intensify rapidly as time passes.

It is therefore imperative that as financial planners we speak to our clients, particularly the Women on the crucial role long term care insurance play in their retirement plans. We can show them what long term care is likely to cost, and how these costs may erode their retirement income. Finally providing them the option of transferring these risk to an insurer of their choice.