Financial Planning for Women Who May Outlive a Spouse

Around this time of year, many families are packing bags for spring break trips. Anyone who has packed for travel knows the challenge: you prepare not just for the first few days, but for the possibility that the journey lasts longer than expected.

Financial planning works much the same way—especially for women. Because women tend to live longer than men, many will eventually manage finances on their own later in retirement. Thoughtful planning can help prepare for that possibility while maintaining financial stability and flexibility over time.

In many families, retirement planning assumes both spouses will share the journey for decades. But statistically, women often travel part of that road alone. According to the Social Security Administration, women in the U.S. live about five years longer on average than men, and by age 85 roughly two out of every three Americans are women, according to the U.S. Census Bureau.

That doesn’t mean planning should be pessimistic. It simply means thoughtful preparation can make a meaningful difference.

Here are five considerations we often discuss with clients.

1. Longevity Changes the Time Horizon

Living longer is a gift—but it also means retirement savings may need to support a longer retirement. A retirement that begins at 65 can easily span 25–30 years or more. Planning with that longer horizon helps ensure spending, investment strategy, and withdrawal rates remain sustainable.

2. Income Often Changes After the First Spouse Passes

Many couples rely on two Social Security checks and sometimes two pensions. When one spouse passes away, the surviving spouse typically receives the larger of the two Social Security benefits—not both. That shift can reduce household income even though many living costs remain.

3. Healthcare and Long-Term Care Become Bigger Variables

Healthcare spending often increases later in life. According to Fidelity’s retirement analysis, the average retired couple may need hundreds of thousands of dollars for healthcare in retirement, excluding long-term care. For women who may live longer, planning for these costs becomes particularly important.

4. Investment Strategy May Need to Evolve

A portfolio designed for two people early in retirement may not be the same portfolio that best supports a surviving spouse later. Risk tolerance, income needs, and time horizon can shift over time. Periodic adjustments help keep the plan aligned with changing circumstances.

5. Estate Planning Helps Simplify Future Transitions

When a spouse passes away, the surviving partner often faces emotional and financial decisions at the same time. Having estate documents, beneficiary designations, and account titles reviewed in advance can make that transition smoother. It also helps ensure assets ultimately pass according to your wishes and that trusted individuals are authorized to help if needed.

Our View

Planning for longevity isn’t about expecting the worst—it’s about recognizing life’s realities and preparing thoughtfully. When families build plans that account for longer life expectancies, income transitions, and evolving needs, they often gain more flexibility and confidence along the way.

As fiduciaries, our role is to help families think through these possibilities ahead of time so decisions later don’t have to be rushed or reactive. A well-constructed plan—built around diversification, sustainable income, and thoughtful estate coordination—can help ensure that whichever path life takes, the financial foundation remains strong.

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This material is provided for informational purposes only and should not be construed as financial, tax, or legal advice. Individual circumstances vary, and you should consult your financial, tax, or legal professionals regarding your specific situation. Watts Gwilliam & Company, including its Optic Asset Management division, is a registered investment advisor with the SEC; registration does not imply a certain level of skill or training. Investing involves risk, including potential loss of principal. Past performance does not guarantee future results.