As the founder and president of WealthChoice, a boutique fee-only financial planning firm for women executives, I believe in empowering clients to take confident steps toward a better life. The women I serve have unique needs. The stress of being a female breadwinner is real.

But in particular, a collaborative, compassionate approach to financial planning is so critical for single women. A prime example of this concept can be found in the journey of a client I’ve worked with for many years.

Retiring Early as a Single Woman

A well-respected partner at a large law firm, this client worked long hours alongside mostly male law partners, many of whom were married. Whenever there was a special project that would require travel or relocation, she would be selected: “She’ll do it because she’s single.” She would feel pressure to fly somewhere for six months for a project.

She would never say no. However, every year she was so stressed over whether she was valued at the firm. Finally, she confided in me, saying “I have to get out. I would love to retire.”

She had methodically saved well. But when you’re a single woman and there is no other income to rely on, it’s scary. She wanted to retire at 52, but then kept pushing out the date. We reached a point where I said to her, “You can retire at 55, you’re good to walk away.”

A Focus on Quality of Life

Her plan included moving from California to Florida for a lower cost of living after leaving the workforce. She also wanted to invest in real estate for extra income. She’s finally allowing herself to do some of the things she’s wanted to experience. She started a portfolio of rental homes, but also has a passion for investing in startups. And in her overall portfolio, I’m the conservative part. My goal is to make sure she never runs out of money. We’re going to make sure we have our hands around this. So, it becomes very collaborative and ongoing as we monitor her cash flow and spending. It’s a constant conversation.

After about a year and a half in Florida, she said, “This is not my state.” We talked, and she made the decision to move back to a high-tax state. I explained the potential consequences of the move but also emphasized the importance of living in a place where she feels comfortable and connected to her social network. It’s not always about money, it’s really about the quality of life.

At the law firm, she was so miserable and stressed, and now she’s in a different place. The financial planning we did for her built up her confidence to live her life on her own terms.

Common Challenges

To better serve single women and female breadwinners, advisors need to do a better job of listening to and understanding the challenges they face.

Women are more likely to become unpaid caregivers, taking themselves out of the job market to care for a child, family member, or aging parent. Women were 59 percent of unpaid eldercare providers in 2021, for example.¹ That has implications for their careers and their overall financial well-being.

Women also have a longer average life span to account for in retirement planning and may have a lower income due to the gender pay gap.

Aligning Money with Values

The breadwinner women I serve are in the thick of life. It’s difficult to be intentional. That’s where cash-flow planning comes into play, especially the ability to gain clarity around spending.

If they’re having difficulty funding their goals, we have them link their accounts in the Client Portal to see where their money is really going. A couple we recently created a financial plan for discovered when they did this, they had a deficit each month instead of a surplus. We can then say, “This is exactly what your cost of living is. You’re going to have to make some choices. Is this money going to the things that are most important to you?”

If you can fund your goals, great. If not, we’re going to do this work to align your spending with your values.

Building Resilience

With longer life spans and relatively high rates of divorce in the U.S., women should be prepared to one day be single and manage their money without a partner. According to the U.S. Census Bureau, about 52 percent of women over 18 are single, a slight increase over the past 10 years.²

Our planning at WealthChoice takes all of this into account. We know what to look for and we make a plan that is sustainable. We equip clients with the knowledge and tools they need to be financially resilient, even in the face of life’s uncertainties.

Financial planning for single women is more than just numbers; it’s about building a strong foundation for the future. By partnering with a professional who understands their unique challenges, women can gain the confidence and clarity needed to achieve their financial aspirations.

Sources:

1. Wells Fargo Economics Group. “Women’s Central Role in a Growing Eldercare Economy,” March 2024.

2. U.S. Census Bureau. “Unmarried and Single Americans Week Statistics,” September 2023.

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