Women’s Unique Retirement Challenges Part 2: Doing More With Less

"If you don't use it before you die, you don't really get your money back," says Horn. "If you're really worried about running out of money, though, it's a much less expensive type of annuity that gives you an income benefit when you turn a certain age."

They're not for everyone, but depending on a woman's age, risk tolerance, health and available assets, it could be a solid addition to her portfolio.

Social Security timing

When the accumulation phase ends and distribution begins, one of the most critical decisions will be when to take Social Security. Eighty-three percent of women collect early, often filling at the same times as their husbands, forfeiting up to a quarter of their benefits. In doing so, they may see up to 70 percent of their benefits eaten up by Medicare premiums and other monthly healthcare costs.

"Women should compare their benefit with their spousal benefit – 50 percent of their husband's – and pick the biggest one," says Wimbish. "At a minimum, wait until the full retirement age, and if there's any way you can delay to 70, that's the best guaranteed return in town."

If a woman's benefit is smaller, however, and if her spouse has yet to file, she can still draw her own benefit in the meantime – albeit at a penalty. For instance, if a woman's primary insurance amount is $800 per month, she'd get about $600 collecting at 62. If her husband retires when she's 66 and half of his benefit is $1,200 per month, she'll get her original $600 plus half of the $400 difference.

Managing healthcare costs

Due to greater longevity, a healthy 55-year-old woman will spend $79,000 more than a male on healthcare expenses in retirement. Tax-deferred distributions and Social Security income can cover these costs, but more efficient funding vehicles are available.

"I'm a big believer in putting as much as you can into an HSA and not touching it until you retire," says Wimbish. "It's one of the great new tools we have, and I don't think companies talk enough about its value."

HSAs provide tax-free contributions, growth and withdrawals and can be used to pay for Medicare parts B and D and Advantage.

Unforeseen medical expenses are another reason to contribute to after-tax accounts. For a family relying on 401(k)s and Social Security, a major medical bill could bump them up a tax bracket or two. A woman with a sizeable Roth IRA or brokerage account, on the other hand, could keep taxes under control while weathering a crisis.

Savings vehicles aside, proactive health management is key to keeping costs manageable, not to mention maintaining quality of life.

"Encourage clients to use one credit card just for medical expenses to keep track," says Marcontell. "Also, don't wait to address health issues."

Acute problems are far cheaper and easier to address, while chronic conditions will lead to significant recurring costs – including dependency on caregivers.

Client engagement

Even the best savings and investment strategies won't help a client whose preferences aren't heard – and who doesn't understand the reasons behind them.

"The No. 1 thing women need is better engagement in the planning process," says Wimbish. "As an industry, we need to understand we're working with real people, real money and real fears, and there's a need for education. Make things crystal clear and make them comfortable asking questions."