Key financial planning considerations for single women

A record 52% of women in the U.S. are single, according to recent studies, driven by declining marriage rates, widowhood and divorce. At the same time, many single women are getting wealthier faster than single men.¹

Our research revealed that single women have a clear set of financial priorities, including retirement planning, maintaining an emergency fund, budgeting, long-term care planning and tax planning. ² Let’s break down some of the ways a smart financial plan can address these goals to help ensure that, if you’re a high-earning single woman, you can pursue your financial future with confidence. 

It’s important to strike the right balance between spending to maintain your lifestyle and setting aside money for savings and investments for the future.

Even as you maximize the amount you save and invest each month, it’s key to maintain enough in cash to cover unexpected expenses as they arise. If too much of your wealth is tied up in property or investments, a sudden drop in your income or a surprise expense can make paying imminent expenses difficult. One tool that can help is ensuring you have an emergency fund, savings that could cover about six months’ worth of expenses in the event of the unexpected. And this fund can pull its weight in an interest-bearing account or a highly liquid investment fund. Your financial advisor can help you sort through your options so you can protect your cash flow without sacrificing potential gains.

If you’re looking for ways to improve your investment strategy, consider the fundamental but vital concept of risk. While too much risk in your portfolio can threaten your financial stability, too little risk can lower your long-term potential gains.

If you’re already comfortable with balancing investment risk, then you’re in a good place. If you aren’t, find an experienced financial advisor who can help you put investment risk into perspective. You’ll be better equipped to build a portfolio that meets your investment goals while building awareness of the risks that you may take and the potential opportunities that come with those risks.

Everyone’s ideal retirement looks different. Some want to relocate, while others want to live out their years where they are. Some have few responsibilities, while others may be caring for loved ones. To ensure a comfortable retirement, consider what your ideal retirement looks like and how much it’s likely to cost.

A discussion with a UBS Financial Advisor can help you turn your vision into reality through achievable goals. A UBS Advisor can even point out things you may have overlooked, such as tax-smart withdrawals from your retirement accounts or planning for long-term care.

Insurance can provide valuable support during challenging times by reducing the financial burden of unexpected events. Consider comparing insurance options with your financial advisor to decide which ones will best serve you.

For example, many people consider a term life insurance policy a must-have. Some high-net-worth individuals without dependents, however, may decide to purchase some form of income replacement insurance instead.

Additionally, long-term care insurance can help preserve your lifestyle in retirement by funding daily care services if you need them. This can be particularly useful for single women as a way to guard against the financial costs of women’s greater average longevity.

Growing and protecting your wealth are key steps toward securing your future. If you’d like help building your financial plan, reach out to a UBS Financial Advisor or a branch office near you.