Investor’s column: Here are the unique risks and roles of women in financial planning

As I sat down to write this column, I intended to discuss some of the unique characteristics of planning for women.

The common issue for couples is that at some point, one person will need to manage things on his or her own.

Statistically speaking, more often than not, this means the woman.

About a decade ago, I was talking to another advisor at an industry conference and was struck by a simple epiphany. In 20-plus years of practice, I have had many couples and many single women as clients, but I have only had one single man as a client.

That single man was the result of losing his wife and he was remarried within a year.

As I have spoken to other advisors over the years, I have found the same can be said across the industry. Why is it, then, that the financial industry directs most of its attention to a man’s point of view?

Unfortunately, this becomes problematic as women transition into widowhood or divorce as many are ill-prepared to take over the finances as they haven’t been given the opportunity or taken the time to learn about personal finance.

An economic benefit of being married is shared expenses. When a household drops from two participants to one, its expenses don’t drop by half but more likely 20 percent.

When one participant separates or dies, social security income drops by half to one-third. This is exacerbated when health costs and increasingly expensive end of life care eat into retirement savings.

Just the facts ma’am

▪ Women have a longer life expectancy than men, outliving men by over five years on average. Women who reach age 65 can expect to live an average of 20 more years, and those who reach age 75, an additional 13 years.

▪ More than two-thirds of Americans age 85 or older are women.

▪ More than 70 percent of nursing home residents are women; their average age at admission is 80.

▪ Women often have fewer resources and lower net worth in their later years. Women are hit hard by changes to their finances caused by caregiving, divorce, widowhood and job loss.

It is normal for every well-functioning marriage to have a division of labor. I rely on my spouse to handle many important tasks in our household. The fact is that at some point, I need to be prepared to potentially fill in at any given time.

For my wife and women in general, it is especially important that they be informed and an active participant in personal financial management as they likely will be solely responsible for this one day.

If they aren’t already, the women I talk to tell me they want to know more and become educated around personal finance issues. They want a personalized strategy that gives them confidence and a sense of security. They want to know if their money will last, if they’ve covered their bases, and how they might contribute to their family and community.

You don’t have to know a lot about investing to ask these questions of your advisor. A good planner should be able to give you answers to your concerns and construct a solid financial plan to put you on the right track.

Gardner Sherrill is an independent wealth advisor with Sherrill Wealth Management in Bradenton. To learn more, visit sherrillwealth.com.