Are Women Prepared for Life Alone as They Age?

• Author: Hickey, Susan L.
• Position: DOLLARS & SENSE

The trends are clear--as women age, the odds are they will be living alone, largely because of either divorce or widowhood. What may be less clear for many of them is whether they are prepared for that life alone--emotionally and financially.

Although both men and women could live three or four decades in retirement, it is more likely for women because they have longer life expectancies, but they also often have less in savings, and smaller or no pensions, so their longevity can work for them and against them.

Forty-six percent of women who are 75 or older live alone, according to the U.S. Department of Health and Human Services' Administration for Community Living. Although many females are the heads of households, they do not always do a good job of planning for their retirements because they spend so much of their time thinking about the needs of others--their children, their spouses, their aging parents. However, they need to realize that their happiness and security in their later years can hinge on so many things, and not just their savings. A number of factors come into play.

Here are some mistakes women make in planning for retirement, and what they can do to correct them:

* Failing to participate in planning. Many women traditionally have left the retirement planning to their husbands and that is a mistake. Women should be involved. They need to understand their financial situation, what would happen if their spouse dies, and where all the important papers are kept. When a meeting occurs with a financial...