With Mother’s Day right around the corner, many of us find our thoughts turning towards the special women in our lives. But did you know that there are some unique things to take into account when it comes to planning for your female clients? When it comes to life insurance and retirement, studies have shown that men and women are generally alike in their goals: maintain a comfortable lifestyle, prepare for unexpected costs in retirement, and be able to leave a legacy to their loved ones. However, despite these similarities, your female clients still have to face some hurdles that men may not. Read on for the top 6 things to keep in mind the next time you sit down with your female clients!
6.) Female clients live longer than their male counterparts.
This shouldn’t be news to anyone, but the takeaway here is that due to their longer lifespans, female clients are open to greater risk of outliving their retirement assets. And this concern is growing as clients are living longer than ever.
5.) Women still bring home less income when compared to men.
The wage gap is narrowing, but this doesn’t change the fact that women have traditionally made less than men. This means that your female clients will need more specialized planning to make sure retirement goals are met. Which leads us to our next point…
4.) Female clients may have lower retirement account balances.
Due to the wage gap and other factors, female clients face a unique problem – they have a statistically longer period of time to spend in retirement… but with less money in their savings and retirement accounts. Again, careful planning is needed to make sure that your female clients can stretch their savings out over the entire length of retirement. Running out of money later in life can be a real threat.
3.) Your female clients may have gaps in employment – and gaps in earnings.
Another concern for your female clients are gaps in employment – for maternity leave, to raise their families, to take care of aging parents/relatives, or other reasons. While men face some of these same concerns, women traditionally bear the brunt of this, which in turn can also contribute to lower overall lifetime earnings – which can even further complicate retirement planning.
2.) Female clients can face higher healthcare costs later in life.
One of the downsides of living longer is that medical costs can ramp up sharply in retirement, especially due to complications from chronic and terminal illnesses. This is an excellent opportunity to position life insurance with chronic illness riders, or even a full standalone long-term care contract to protect against the threat of depleting retirement funds to pay for medical costs.
1.) Women can face higher tax responsibilities.
Due to their longer lifespans, many of your female clients could very well be widowed or single during their later years. Filing singly can have some serious tax implications for a client on a fixed income in retirement. Proper retirement income planning NOW can help mitigate these possible tax hits and provide your clients with much needed peace of mind.
To all the moms out there (and those that love them!) – Happy Mother’s Day wishes from Zenith Marketing Group!