Financial Planning for Women

Women are earning, owning and managing more wealth than ever. But they’re also working with less room for error. To discuss what this means, Comerica brought together Senior Wealth Management leaders Lisa Featherngill and Janelle Walker with a group of professional women from Comerica for a candid conversation. This article summarizes key takeaways from their discussion, offering practical steps to help women grow and protect their financial future.

Unique financial challenges for women
It’s easy to assume financial planning is the same for everyone, but women face a distinct set of financial headwinds. Some are rooted in long-standing economic norms, while others stem from the roles women often play within their families and communities.

Here are some of the most common challenges:

• The gender pay gap. On average, women make 83 cents for every $1 men make in the market, according to the U.S. Bureau of Labor Statistics. Over a lifetime, this gap compounds — impacting everything from debt levels to retirement contributions.
• Caregiver responsibilities. Women continue to play a prominent role in caregiving. These roles, including childcare and elder care, often come at the cost of professional momentum and financial growth. In many cases, women step away from their careers entirely during these caregiving years, creating a financial gap.
• Investment confidence. While women are just as capable as men when it comes to managing money, many report feeling less confident about investing. 58% of women said that investing intimidates them. This hesitation can lead to overly conservative portfolios and missed opportunities for growth.
• Longevity. Women, on average, live five years longer than men. While this is a gift, the additional years also mean more years of planning for a longer life.
• Estate planning responsibilities. Nearly 90% of women will be responsible for managing the family’s finances at some point, often during periods of illness, loss or transition. Estate planning and long-term care decisions often fall to them as well.

Altogether, the financial playing field for women looks and feels different. The key is to recognize the financial realities women face and build strategies designed to meet them.

Financial planning: first steps
If the financial landscape for women is a mountain, then planning is the map.

A plan helps you navigate unexpected detours and move forward with confidence. And, like any good map, it works best when paired with an experienced guide, like a trusted financial advisor, who understands your needs and goals.

To start financial planning, consider these early steps:

1. Know your current financial picture. Every strong business knows its assets and liabilities. The same practice is important for personal finances. Create a simple breakdown of your budget, cash flow, debt levels and upcoming major expenses. This will give you a baseline from which to build.
   
2. Define your financial goals. What are you working toward? For many women, the answer often centers on family. This can include supporting children, helping parents and planning for the future. To set yourself up for success, take time to clearly define your short-term and long-term goals.
   
3. Develop a plan to reach your goals. When you know where you are and where you want to be, it’s much easier to connect the dots. A financial plan simply breaks down when and how you’ll achieve your goals. Include timelines, savings and investment targets and regular checkpoints to get an updated and current picture.

How to make the most of your employee benefits
Employee benefits are one of the most powerful — and often underutilized — ways to organize and accelerate your financial plan. From retirement contributions to healthcare savings, employer-sponsored programs can offer thousands of dollars in value each year if you know how to use them. Unfortunately, many women leave key benefits untapped. To make sure you’re capturing every dollar, consider these options:

Retirement Savings: A Quick Primer
A strong retirement account is one of the most effective ways to build long-term wealth. Sadly, less than half of women feel adequately prepared for retirement.

To avoid this situation, start by understanding the plans available to you:

• Social Security. Social Security provides monthly income in retirement based on what you earned and for how long you worked. For women, understanding benefit timing and spousal options is essential to maximizing this resource.
• Personal savings. Investment accounts, high-yield savings accounts, CDs and other assets can help you bridge income gaps — especially if you plan to retire early. They typically provide investment returns without the restrictions of a standard retirement account.
• Employee-sponsored plans (e.g. 401(k)). Tax-advantaged retirement plans that help you save by deducting from your paycheck, often including an employer match. Contributing consistently can help women close retirement gaps and benefit from compound interest.

These sources form the foundation of most retirement plans. But how you use them and when you contribute matters. Most importantly, earlier contributions allow your money to grow using compound interest. This is one of the most powerful tools in investing, and it rewards time and consistency.

For example, if you invest $5,000 at age 30 and earn a 7% annual return, it could grow to over $38,000 by age 60 — even if you never add another dollar. Put the money under your mattress, and 30 years later, it would still be worth $5,000.

The earlier you start, the more time your money has to grow.

Health Benefits That Save
There is no substitute for good health, but staying healthy and covering the costs that come with it requires careful planning. According to the World Economic Forum, working women in the U.S. spend $15 billion more than men on healthcare each year.

To protect your wallet, check your benefits package for:

• Medical, dental and vision insurance. Choose coverage that fits your needs. Preventive care, specialist access and prescription coverage can make a major difference in long-term costs.
• Health Savings Accounts (HSAs). If you’re enrolled in a high-deductible health plan, an HSA lets you set aside money tax-free for qualified medical expenses. It’s triple tax-advantaged: Contributions are deductible, growth is tax-free and withdrawals for medical costs are tax-free.
• Women’s health and wellness programs. Many employers now offer benefits tailored to women’s health, including fertility care, pregnancy support, menopause programs, mental health access and chronic condition management. These services support your well-being and often reduce out-of-pocket costs.

At Comerica, for example, employee medical premiums are approximately 80% covered, saving employees thousands each year.

Financial Planning and Long-Term Benefits
As women live longer and often take on caregiving responsibilities later in life, planning for long-term needs becomes a necessity. Explore these often-available benefits:

• EAPs and financial coaching. Employee Assistance Programs (EAPs) often include access to financial wellness resources, debt management tools and one-on-one coaching. These services support long-term financial planning.
• Legal and estate planning support. Some employers offer access to legal services that include will drafting, healthcare directives or power of attorney documents. Use this as an easy way to start or update your estate plan.
• Long-term care insurance. This coverage helps pay for services like in-home care, assisted living or nursing homes — expenses that are rarely covered by Medicare. Plan early to lock in lower premiums and protect your retirement savings from unexpected costs.
• Disability insurance. If illness or injury keeps you from working, disability insurance can provide income protection. For women in their peak earning years, this benefit can help preserve financial assurance during a difficult time.

Lastly, don’t overlook benefits that support growth beyond retirement. Tuition reimbursement programs help women pursue advanced degrees or certifications. Other perks, such as commuter benefits or identity theft protection, can reduce everyday costs and free up resources for savings and investment. Taken together, fully utilizing your benefits can play a meaningful role in strengthening your overall financial strategy.

Your financial planning checklist
You’ve read the strategies. Now it’s time to put them into action. Use this checklist to evaluate your current financial plan and identify where to focus next:

Understand Your Financial Picture
☐ I know my monthly income, expenses and debt levels
☐ I’ve created a personal balance sheet of what I own and owe
☐ I track my cash flow and upcoming large expenses

Define Your Financial Goals
☐ I’ve outlined short- and long-term financial goals
☐ I’ve considered family responsibilities and personal priorities
☐ I review my goals annually and adjust as needed

Build a Plan to Reach Them
☐ I have a financial plan that connects where I am to where I want to be
☐ My plan includes investment, savings and risk strategies
☐ I’ve considered working with a financial advisor to stay on track

Maximize Your Retirement Benefits
☐ I contribute enough to receive my full employer 401(k) match
☐ I understand my Social Security options and timing strategy
☐ I’ve explored IRAs or other supplemental retirement accounts
☐ I’ve started early to take advantage of compound interest

Review Your Health and Wellness Coverage
☐ I’ve selected medical, dental and vision coverage that fits my needs
☐ I contribute to an HSA or FSA, if eligible
☐ I’ve explored programs related to fertility, mental health or menopause
☐ I understand what’s covered and review annually

Plan for Long-Term Protection
☐ I’ve considered long-term care and disability insurance
☐ I’ve started or updated my estate plan

Leverage Additional Benefits
☐ I’ve reviewed tuition reimbursement or professional development programs
☐ I’ve enrolled in available legal, identity protection or financial wellness services

Is Your Financial Plan Working as Hard as You Are?
The experienced professionals at Comerica can help you align your finances with your goals. Talk to a Comerica advisor to get started today.