Empowered Retirement for Women - What Every 60+ Woman Should Know
- Jeb Jarrell, CFP®, CAP®, CEPA®, MS-AFP
- Jul 18
- 12 min read
If you’re a woman over 60, you’ve seen a lot in life – and you know the value of being prepared. This update is all about helping you plan for a secure, fulfilling retirement in an empowering way. I’ll be answering some of the biggest financial questions women face, without scare tactics.
Longevity Risk & Making Your Money Last: Women live longer, which is both a blessing and a planning challenge.
Planning for Long-Term Care Costs: On average, women are more likely to require long-term care, which can be a significant expense.
Adapting to Life’s Transitions: On average, a widow’s household income drops by 37% after the loss of her husband. Considering the average widow lives fifteen years after the loss of their spouse, planning for this change in income is a necessity.

Let’s dive in. You’ve got this!
Longevity Risk: Longer Retirement for Women
Imagine you’re healthy at 85, planning a big birthday celebration. Wonderful, right? Now imagine you also have plenty of financial resources to fund your life beyond 85 – that’s the goal.
Longevity risk is the risk of outliving your money, and it’s a particularly important topic for women. Why? On average, women live about five years longer than men, which makes running out of money a bigger concern for them. In fact, many people underestimate how long their retirement might last. A recent study found that only one-third of adults knew that the average 65-year-old woman can expect to live until about 87 (for men, it’s ~84). And remember – that’s average. Plenty of women will live into their 90s and beyond. This differs from the average life expectancy because that number is pulled down by all those who pass away early; those who live to 65 can expect to live, on average, significantly longer than the typical life expectancy.
Planning for a long life means treating your retirement savings like a marathon, not a sprint. I usually run financial plans for age 95 – not because you definitely will, but because we want your money to last if you do. For a 65-year-old couple, there’s a good chance one spouse will reach age 90 or 95. If you’re single, you should still plan for a similar horizon. This isn’t about worrying; it’s about being strategic so you can enjoy life every step of the way. Think of it this way; it’s better to have too much money and not enough life instead of too much life and not enough money.
How can you make your money last? Here are a few strategies.
Create a Retirement Paycheck: Start by covering your essential expenses with reliable income sources. This usually starts with Social Security. It also includes any pension you have. If you have an annuity with an income guarantee, this is often the time to begin using that benefit as well. Knowing your grocery bills, utilities, and housing costs are paid for every month can provide huge peace of mind.
Practice Sustainable Withdrawal: For expenses beyond the basics, figure out a safe withdrawal rate from your investments. This means determining how much you can withdraw each year without running out. One rule of thumb is that you can safely withdraw 4-5% of your investments each year safely. I’m often comfortable with a number that’s slightly higher than that, if you’re willing to be flexible with your withdrawals in years that the market has pulled back. My approach is more dynamic and allows you to get more enjoyment from your savings.
Invest for Growth (Yes, Even Now): It may sound counterintuitive, but being too conservative with investments can be riskier in the long run. The risk here is that your money will lose its purchasing power because of inflation. This isn’t a risk year over year, but inflation can absolutely compound over a 20–30-year period. The best strategy for fighting inflation is investing a portion of your portfolio for growth. In this case, investing for growth means owning stocks.
I typically hold enough bonds in a retirement portfolio to cover five years of withdrawals, then invest the remainder in a stock portfolio. My thought process is that the average bear market, a 20% or more market drop, lasts for 11.4 months and then recovers to its previous peak within 2.5 years. By holding 5 years of withdrawals in bonds, I’m able to help my clients sidestep bear markets and avoid the necessity of selling stocks while they’re already down. Of course, your exact mix should fit your risk comfort, but don’t automatically park everything in cash or low-yield bonds – that might not keep up with rising costs over decades.
Plan for the “What-Ifs”: Longevity risk is essentially a big “what if.” What if you do live to 100? Embrace that possibility by planning fun things to do in those later years and making sure your finances can support them. This might include setting aside a contingency fund for age 90+ or considering financial products like longevity annuities (which start paying you only if you reach a certain age, aka QLAC). The key is anticipation, not anxiety. When you anticipate, you can prepare; when you prepare, you replace fear with confidence.
Lastly, remember that living longer is a gift. You have more years to enjoy life, pursue passions, and spend time with loved ones. By planning ahead, you’re making sure those extra years are filled with joy and financial security, not money worries.
Preparing for Long-Term Care Costs
No one likes to imagine themselves needing help with daily living activities or requiring a stay in a nursing home. However, being realistic about long-term care (LTC) is one of the most empowering things you can do for your future self.
Here’s the reality: about 70% of adults over 65 will require some form of long-term care in their lifetime. This might mean help at home with bathing and dressing, or it could mean a stint in a rehab facility…or even living in a longer-term memory care facility. It doesn’t mean it will definitely happen – but the odds are high enough that it’s wise to consider the possibility.
Now, let’s talk costs (deep breath – these numbers can be eye-opening, but remember, knowledge is power!). Long-term care can be expensive. According to a 2023 survey, the median cost for an assisted living facility is about $5,000 per month. Prefer in-home care? You’re looking at $1,440 to $2,160 per day for in-home, full-time specialized nursing care. For a nursing home, the national median cost for a semi-private room is roughly $104,000 a year, and a private room is about $117,000 per year. Yes, these are big numbers – but don’t let them scare you. Instead, let’s use them to build a solid plan.
Here’s how you can empower yourself regarding long-term care:
Understand What Medicare Covers (and doesn’t): A common misconception is that Medicare will foot the bill if you need long-term custodial care. Unfortunately, Medicare does not cover extended nursing home stays or ongoing custodial care (it only covers short stints for recovery and certain conditions). Medicaid can cover nursing home costs, but only after you’ve depleted most of your assets. Additionally, most facilities only have a limited number of Medicaid beds, so locating an available bed might require you to move. Knowing this, plan as if you may have to fund care, at least partially. This mindset will motivate you to explore other solutions before a crisis hits.
Consider Long-Term Care Insurance or Alternatives: Traditional long-term care insurance policies have gotten pricier and less popular (only about 3% of Americans have one). A lot of this is because the need for LTC has expanded and insurers really didn’t understand how to price their risks accurately when they first began offering long-term care insurance. That said, there are newer options like hybrid life insurance policies with long-term care riders that can help cover care costs.
If insurance is too expensive or you have health issues that make it hard to qualify, create a dedicated “care fund.” This could be a portion of your savings earmarked for future care needs. Treat it like a safety net – if you never need costly care, great, the money can go to your heirs or other goals. If you do need care, you’ll be glad that money is there.
Involve Your Family in the Conversation: It might be tough, but talking with your spouse, children, or other close family about long-term care preferences is important.
Do you prefer the idea of receiving care at home?
Would you be open to an assisted living community if needed?
Let them know your thoughts and discuss what financial resources might be available. Family members are often part of care decisions, and having a plan can relieve stress for everyone. (Keep in mind, women often become caregivers for others – but who will care for you? It’s absolutely okay to plan to not be solely dependent on family so that you don’t overburden anyone.)
Stay Ahead of Health Changes: Some health issues are beyond our control, but maintaining a healthy lifestyle can help you stay independent longer. Regular exercise, a balanced diet, and being socially active all contribute to better aging. This isn’t a foolproof shield against needing care, but it can delay or reduce the intensity of care you might need – and more importantly, it improves your quality of life. It’s the ultimate win-win: good for you and good for your finances.
The bottom line on long-term care is don’t put your head in the sand. By recognizing and planning for the possibility of LTC, you’re actually taking control. It’s empowering to know that even if life throws you a curveball health-wise, you have a plan to ensure you get the care you need without derailing your finances. That peace of mind is priceless.
Navigating Finances After Losing a Spouse
This is a topic no one likes to think about, but it’s a reality for many. Women are much more likely than men to experience the death of a spouse and face managing finances alone. In the U.S., nearly one in three women over 65 is widowed (about 32%), compared to only 11% of men the same age. Women also tend to marry men older than themselves and outlive them, so statistically many wives will become widows at some point. It’s not a pleasant thought – but with some preparation and knowledge, you can feel secure that, if it happens, you’ll be financially okay and know what steps to take.
First, let’s acknowledge the emotional weight. Losing a spouse is devastating, full stop Grief is insidious, making concentration impossible, causing brain fog, and creating short-memory loss. I bring these up so you know that they’re perfectly normal, as frustrating as they can be. It’s important to give yourself grace during this time. Eventually, though, stepping back into the financial driver’s seat will be necessary – and that can actually be an empowering part of regaining control of your life.
Key financial impacts to be aware of:
Income Changes: When a spouse passes, you may lose one Social Security check or a pension income. For example, if both of you were receiving Social Security, the survivor will typically keep the larger of the two benefits, but the smaller one goes away. This means a drop in total monthly income. If your husband had a pension and you’re entitled to a survivor benefit, find out whether it’s 100% of his amount or a percentage. Knowing these details helps you plan your new budget. Many widows find they must adjust to living on one income instead of two overnight. It’s challenging, but manageable.
Tax Bracket Changes: As a single filer, you may move into a higher tax bracket on the same income that was previously split on a joint return. This can come as a surprise – your tax bill might actually increase even though your overall income went down…simply due to filing status. Be prepared for this by working with a CPA or financial planner to estimate your taxes as a single person and adjust your withholding or quarterly payments.
Sole Decision-Making: If your spouse was the more active one in finances or investing, suddenly all those decisions fall to you. I see this a lot; the husband often handles investments while the wife handles paying the bills. This means that the surviving spouse is thrust into the driver’s seat when they lose their spouse. The good news is that women are more financially savvy and involved than ever. Nearly 9 in 10 married women today are involved in spending and investing decisions in their household – a huge increase from just a decade ago. If you haven’t been as involved up to now, start leaning in by joining meetings with your financial advisor, learning about your investment accounts, and making sure you know all the login details and where important documents are. You have every capability to handle it – and remember, you don’t have to do it all alone. Consider enlisting a trusted financial advisor who can guide you, especially in the transition period after loss. Think of them as a co-pilot while you get comfortable in the captain’s seat.
Confidence and Support: It’s very common for widows to feel less confident about their finances at first. Studies show that divorced or widowed women often feel less confident about having enough money for retirement than married women do. This isn’t about ability – it’s about circumstance and sometimes just the overwhelming nature of handling everything solo. To build your confidence, take it step by step. Start by getting a clear picture of where you stand: assets, debts, income, expenses. Then, set new financial goals for yourself. Maybe you want to ensure you can stay in your home, or maybe you’d like to move closer to family – factor those into your plan. Over time, as you make decisions and see things taking shape, your confidence will grow. Also, don’t underestimate the power of talking with other women who’ve been through it. There are support groups and networks for widows where people share advice and encouragement – sometimes just knowing “I’m not alone in this” does wonders for your outlook.
Be strategic as a couple now: If you’re reading this and you still have your spouse, there are steps you can take together.
Make sure both of you are in the loop on household finances – no secrets or “he handles that, I have no idea” scenarios.
Update your wills and beneficiary designations on retirement accounts and insurance.
Consider if you have adequate life insurance, especially if one of you has a pension that doesn’t continue at death or if there’s debt to pay off.
Discuss your long-term plans: what each of you would want if the other passes first.
It’s a tough conversation but a loving one. It ensures that the surviving spouse isn’t left guessing about big decisions (like whether to keep the house, move, how to handle life insurance proceeds, etc.). As hard as it is to imagine, planning for it is an act of love.
Finally, remember that a spouse’s passing, while heartbreaking, does not mean the end of your financial freedom or happiness. Many widowed women go on to travel, start new hobbies, volunteer, even start businesses or new careers later in life. Your life may look different, but it can still be rich and fulfilling. Planning ahead simply removes one more worry from your mind, so you can focus on healing and finding joy again when that time comes.
Moving Forward with Confidence
We’ve covered a lot – longevity, healthcare costs, loss of a partner – these are heavy topics. But here’s the empowering truth: knowledge and preparation put you in control. You now know the challenges that are common for women 60+, and more importantly, you know you can face them head-on with smart strategies and a positive mindset.
Let’s recap a few action steps:
Plan for a long life: Don’t shortchange your future self. Assume you might live into your 90s (or beyond) and arrange your investments and retirement income accordingly. This way, you’ll be prepared if it happens, and if not – well, you’ll have extra money to enjoy or leave as a legacy. As one study noted, don’t use the “average” life expectancy as your plan – aim longer. It’s better to have money left over than to run short.
Address the long-term care question: Educate yourself on what long-term care costs really look like and consider how you’d pay for it if needed. Whether it’s through insurance, personal savings, or a mix of both, have a game plan. Think of it as securing your dignity and comfort in later years. By doing this, you’re also likely sparing your children or family from tough financial burdens, which is a loving gift to them as well.
Communicate and get support: Don’t bear the weight of these concerns alone. Talk to your spouse, your family, and importantly, your financial advisor or planner. Sometimes an advisor can introduce options you didn’t know about (for example, creative ways to insure against longevity or use home equity wisely). And if you don’t have a trusted financial professional, consider finding one who understands the unique needs of older women. It’s okay to ask questions – it’s your money and your life, after all.
Stay empowered through knowledge: Make it a point to keep learning. The financial world changes (tax laws, investment products, etc.), and your life circumstances can change too. The more you educate yourself – through newsletters like this, workshops, books, or seminars – the more confident you’ll become. You don’t have to become a finance expert overnight, but little by little, build your savvy. Even reading one article a week or attending a webinar for retirees can boost your knowledge and sense of control.
Above all, remember that your financial journey is about enabling the life you want. Retirement planning isn’t about depriving yourself; it’s about making sure you have the freedom to do what matters most to you, for all your days to come. Whether that’s traveling, spending time with grandchildren, pursuing hobbies, or simply enjoying peace of mind – money is the tool to support those dreams.
I hope you feel a little more informed and a lot more empowered. You’ve handled countless challenges in your life already. With a solid plan in place, your 60s, 70s, 80s and beyond can truly be golden years – not because they’re free of challenges, but because you know how to meet those challenges with wisdom and confidence.
Here’s to embracing the future with optimism and the knowledge that you are in control of your wealth and your destiny.
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