By Kevin Flesch
As a woman, you might face more financial challenges than your male counterpart, which could make investing crucial to your stability and overall well-being.
Women live longer on average, which means your money may have to stretch further in retirement. You’re also more likely to have your career interrupted by leave, potentially reducing your Social Security benefits. And, unfortunately, women are still paid less than men by about 18%.
When it comes to investing, fewer women than men consider themselves investors (64% compared to 76%). This hesitancy to claim the title of “investor” happens despite more women taking control of their financial lives than ever.
No matter who you are, confidence is key to investing. Consulting a financial advisor with Millstone Financial Group can help you develop a financial plan to overcome your unique challenges and empower yourself with the financial knowledge you need to steer your own ship.
A Closer Look at the Financial Challenges Women Face
Sound saving and investing practices are critical for overcoming the financial challenges particular to women. Financial planning can provide a road map for navigating around, over, and through issues that might hinder your future financial stability, such as the following:
Longer Life Expectancy
The average woman’s life expectancy is around 5.8 years longer than the average man’s. That means you may need to plan for a longer retirement. Retirement planning can provide the skills and resources you need to be confident that your money can last as long as you do.
A Stagnant Income Gap
The gap between the hourly wages of men and women has narrowed in recent years but remains a chasm too wide. To match the average pay of men in 2024, women in the U.S. had to work nearly a full three months into 2025.
A qualified financial advisor can help educate you on how investing and saving can enable you to offset this unfortunate gender difference.
Lower Social Security Benefits
Social Security benefits are based on your income before you retire, and employers have historically paid women less than men. Couple that with women being more likely to leave the workforce to care for children and you get an average lower benefit for women.
Quite a bit lower, as it turns out: approximately $392.88 per month, which comes out to a staggering $94,291.20 over 20 years.
Increased Healthcare Costs
Not only do women live longer than men, but they’re also more likely to bear unpaid caregiving responsibilities for parents, spouses, family members, or friends, adding financial pressure. Living longer increases your costs for healthcare and the likelihood of long-term care. However, financial planning can help you mitigate the impacts of higher medical expenses in retirement.
Working with a wealth manager or financial advisor, you can build a solid financial knowledge base that boosts your confidence regarding your circumstances and investing for your future.
Investing Women Outperform Men
While women may be reluctant to consider themselves investors, they tend to outperform men when they do invest.
Women-led investing demonstrated less volatility with similar absolute and risk-adjusted returns in a Wells Fargo Advisors study of gender differences in average annual trades between January 1, 2018, and December 31, 2024. Investment accounts led by men had lower average risk-adjusted returns.
Women should also take heart from Fidelity’s 2024 Women & Investing Study, which showed that more women are investing. The study found 71% of women invested in the stock market in 2024, up from just 60% in 2023.
Talk to Millstone Financial Group About Investing
As a woman, you face many unique obstacles that could leave you uncertain about your financial future. Fortunately, financial planning and gaining knowledge about investing can increase your confidence and help you meet your financial goals.
At Millstone Financial Group, we’ve identified four distinct areas of risk we can address to lead you into retirement with confidence, clarity, and excitement. Schedule a complimentary consultation by calling (732) 385-8544 or emailing kflesch@millstonefinancial.net.
Advisory services are offered through Millstone Financial Group Limited Liability Company, a Registered Investment Advisor in the State of New Jersey. Insurance products and services are offered through Millstone Financial Group Limited Liability Company.
All material discussed is for informational purposes only. Opinions expressed are solely those of Millstone Financial Group Limited Liability Company and staff. All topics covered are believed to be from reliable sources; however, Millstone Financial Group Limited Liability Company makes no representations as to its accuracy or completeness. Investing involves risk including the loss of principal.
This article shall in no way be construed as a solicitation to sell securities or investment advisory services to residents of any state other than New Jersey, or where otherwise permitted. All information and ideas should be discussed in detail with your individual adviser prior to implementation.
Millstone Financial Group Limited Liability Company dba Millstone Financial Group does not offer tax planning or legal services but may provide references to tax services or legal providers. This material is intended to provide general financial education and is not written or intended as tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Millstone Financial Group may also work with your attorney or independent tax or legal counsel. Please consult a qualified professional for assistance with these matters. You should always consult with a qualified professional before making any tax or legal decisions.
