By Aimée Lloyd, CFP®, CDFA®, CFA® | Founding Partner, Keel Financial Partners
This month, we are thinking about the women in our lives. Our clients, our colleagues, our families, the people who show up every day with a lot on their plates. And we are thinking about something that does not get talked about directly enough: the financial challenges women face, and why a plan built around your specific life matters so much.
Women have made real strides in education, leadership, and financial independence. And yet, women still face a distinct set of financial realities that call for a different kind of planning conversation. A more direct one.
The Financial Landscape Women Navigate
The numbers tell an important story. Women, on average, live longer than men, often five to seven years longer.1That reality alone has significant implications for retirement planning, healthcare costs, and long-term financial security. A retirement plan built for a 20-year horizon may fall short over 25 or 30 years.
Women are also more likely to experience career interruptions, whether for caregiving, family, health, or a partner’s career. Each interruption can affect Social Security benefits, retirement contributions, and long-term wealth accumulation. A gap of even a few years in 401(k) or IRA contributions can translate to tens of thousands of dollars in lost retirement savings when you account for forgone growth.
The gender pay gap, while narrowing, remains real. And women are significantly more likely than men to face financial hardship following divorce or the loss of a spouse, often stepping into primary financial decision-making at a moment of real stress.
None of this is insurmountable. But a plan built on average assumptions may not work well for the women it is meant to serve.
Life Transitions Require a Different Kind of Planning
One of the most consistent things we see in working with women is that the most important financial planning moments tend to arrive at the same time as the most personally difficult ones.
Divorce
The financial implications of divorce go well beyond asset division. Beneficiary designations, tax filing status, Social Security strategies, retirement account division, insurance coverage — all of it requires attention and coordination. Having an advisor who understands both the financial and personal dimensions of this transition makes a real difference, in my opinion.
Widowhood
Losing a spouse often means suddenly taking on full responsibility for financial decisions that may have been shared for years. The months following a loss are not the right time to make irreversible financial decisions, but certain matters do require timely attention. Having an advisor who already knows your full picture can help.
Career Transitions
Whether returning to work after time away, changing industries, starting a business, or stepping back to care for a parent or child, career changes have financial consequences that run through your entire plan. Benefits, retirement contributions, insurance, and cash flow all deserve a fresh look.
Retirement
For women, we believe retirement planning can be more complex. Longer time horizons, potential healthcare needs, and in many cases the likelihood of spending part of retirement on their own — these are realities worth planning for directly.
The Investing Gap Is Real and Closeable
Research consistently shows that women are disciplined, effective investors, often outperforming male counterparts over the long term.2 And yet, despite holding 42% of wealth, only 26% of American women are invested in the stock market,3 and only 19% feel confident selecting investments aligned with their goals.2
We think this reflects an industry that has not always spoken to women well, not a lack of capability. At Keel, we work to have investment conversations that are educational, collaborative, and tied directly to your goals.
We believe your investments should reflect your values, your timeline, your risk tolerance, and your life.
Planning That Sees Your Whole Picture
What we have found, working with women across a wide range of circumstances, is that the most valuable planning work goes well beyond the numbers. It is about knowing that your financial life is organized, intentional, and ready for what comes next.
That means retirement projections that account for longevity — not just to age 80, but to 90 or 95 — and a clear picture of where your income will come from.
It means Social Security strategy. For women who have taken career breaks or earned less than a spouse over their working years, optimizing Social Security can be one of the highest-impact decisions available.
It means estate documents, beneficiary designations, and financial decisions that reflect your current life, not the one you had when you first set them up.
It means reviewing insurance coverage — long-term care, life insurance, and disability protection — through the lens of your specific situation.
And it means a clear picture of your cash flow and savings strategy, whether you are building wealth, working through a transition, or heading into retirement.
A Note on Women Supporting Other Women
Many of our clients are not only planning for themselves. They are also supporting aging parents, helping adult children get started, or thinking carefully about the legacy they want to leave. That middle-generation complexity is something we take seriously.
We also think about the women who have not yet had a financial planning conversation that felt like it was built for them. If that is you, or someone you know, we would welcome that conversation.
This Month and Every Month
Women’s History Month is a good moment to be honest about the financial ground that still needs to be covered. The best way we know how to contribute is to help the women in our community build financial plans that actually fit their lives.
If you would like to revisit your plan, or if someone you know is ready to start building one, we are here.
Sources
- CDC National Center for Health Statistics; Harvard Health Publishing, Why Men Often Die Earlier Than Women.
- Fidelity Investments, Women and Investing Study, 2021. Analysis of 5.2 million accounts, January 2011–December 2020.
- S&P Global.
Disclosures
The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
Financial planning is a tool intended to review your current financial situation, investment objectives and goals, and suggest potential planning ideas and concepts that may be of benefit. There is no guarantee that financial planning will help you reach your goals.
Statistical sources are provided for informational purposes and may not reflect the most current data available.
