Discover what one financial planner over 50 is doing to solidify her financial future and how you can follow her path.

By 2028, women will manage 75% of global discretionary spending, and by 2030, they will own 66% of the wealth in the United States. This shift highlights the vital role women play in shaping financial landscapes.

These projections are remarkable, especially when considering the statistics. As per the 2019 Census, over 116 million Americans are aged 50 and up, with women making up 53.7% of that group—approximately 62 million individuals. As this demographic grows, so does their financial influence.

You might wonder, “That’s great for women collectively, but how can I ensure I benefit from this trend and secure my financial future?”

As a Certified Financial Planner in this age group, I have insights to share. Here’s how I’m preparing for a strong financial future, and how you can too.

Create an Emergency Fund for Financial Stability

Every woman, regardless of age, should have a readily accessible emergency fund. While recommendations vary, financial experts generally suggest saving enough to cover at least six months of living expenses.

Even though women over 50 have significant workplace experience, we can still face challenges. For those still employed, job loss can be particularly daunting, with research from 2020 indicating that women aged 50 to 61 are 18% less likely to find new employment compared to younger counterparts, and those over 62 are 50% less likely to secure new jobs.

The importance of an emergency fund was underscored during the recent job losses many experienced. While we hope for stability, such funds offer a buffer against common financial stresses, including recessions or unexpected events.

Leverage Longevity for Financial Planning

Despite the pandemic's impact on life expectancy, women still enjoy a longevity advantage, with an average life expectancy of 80.5 years versus 75.1 for men. As women outlive men, they often assume control of family finances, making it crucial to plan for the long term.

Unless you have health issues, it's wise to prepare for a lengthy life. To ensure a secure financial future, consider these essentials:

  • a reliable financial advisor
  • an updated will
  • a healthcare directive
  • a durable power of attorney
  • plans for potential long-term care expenses

Enhance Your Financial Literacy

Financial literacy is vital for women aiming for financial security, especially as they age. Since women typically live longer, many will eventually take charge of their own finances. Understanding financial goals, different investment options, and the basics of investing is crucial.

Surveys reveal that many women lack confidence in their financial knowledge. If you feel this applies to you, invest time in boosting your understanding. Start with a financial literacy test available online. Here are two recommended quizzes:

The first quiz by FINRA.

The second by the National Financial Educators Council.

These quizzes can help identify areas for improvement, and both organizations offer further educational resources on financial topics.

Invest in Stocks for a Secure Financial Future

Time is essential for investors. Statistics suggest a woman who is currently 50 may live another 30 years. If she relies on investment income to supplement her retirement, maintaining a diverse investment portfolio is critical. Stocks are an excellent option for long-term investments as they have the potential to beat inflation, generate income, and appreciate in value.

The financial outlook for women over 50 is promising. Preparation is key—knowledge of finance and a stock-inclusive investment strategy can lead to significant rewards.