When it Comes to Retirement, Men and Women need to Plan Differently

Back in 1992, relationship counselor John Gray published Men Are from Mars, Women Are from Venus.¹ The book was a huge best-seller, not because Gray had discovered some startling new fact, but because he cogently explained what most everybody always knew—when it comes to communicating, men and women seem to come from different planets.

In his practice, Gray often saw that when a woman told her partner about a problem she was having, her primary desire was to be listened to. But the man would assume she was asking for a solution, and so after giving one would consider the conversation over. The result would often be misunderstanding and hurt feelings.

Researchers have found that, in broad terms, men and women also tend to think differently about finances.² One study found that men often consider money to be a symbol of power and success, while women tend to associate it with security or emotional significance. Because of this, men are more likely to think of saving and investing as a contest to be won. 

Financial advisor Patrick Huey says that men focus on returns, believing they can outsmart the market. These are factors for greater risk. On the other hand, studies have shown that female investors are more likely to trade less frequently, avoid risky trends, and stay the course during market volatility. As a result, they tend to perform better than men as investors. An analysis from Warwick Business School found that women outperform men by 1.8% annually.

Healthwise, men statistically do not fare as well as women, with a shorter life-expectancy. A significant factor in this is the male tendency to avoid the doctor, resulting in a higher incidence of heart disease, stroke, and high blood pressure.

Psychologically, men face different challenges in their post-work years. They struggle more often with the loss of identity that comes with leaving a career. And men are less likely to maintain close friendships, leading to isolation and loneliness. 

For men, especially, the idea of retirement simply being "on vacation ever day" soon becomes old. And they find themselves with too much time on their hands. To avoid falling into this common rut, men need to plan intentionally for a life with purpose, one that will challenge and engage them.  Life is much more satisfying when you have a strong motivation to get out of bed each day.

As your advisors, we are concerned with more than just your financial health. Your fully funded retirement nest egg isn't the ultimate goal. Money is simply a tool for achieving the kind of life that will bring you the most satisfaction. We would love to discuss the steps you can take now to ensure that your retirement years are your most fulfilling. Chat with one of our Retirement Concierges at retirement.concierge@apadvisors.com or call 800.394.6807.

 

1. http://go.pardot.com/e/91522/from-Mars-Women-Are-from-Venus/96xfjz/2922032774/h/skJyYiquyRE11sX_kXnrErtsk8azzEOTiMQFZdUgxEY
2. http://go.pardot.com/e/91522/y-men-need-to-plan-differently/96xfk3/2922032774/h/skJyYiquyRE11sX_kXnrErtsk8azzEOTiMQFZdUgxEY