Retirement: Special Considerations for Women


Filed under: Retirement


iStock_000007464603Large[1]Women often express concerns over having enough money for retirement, and it’s no wonder: One study found that the average retirement savings for women age 65 to 69 is 22 percent less than that of men of the same age. When you think about the fact that women tend to live longer than men, the problem becomes even more clear. In general, women will spend a longer period of time in retirement, while living on less money.

The earning disparity between men and women is likely to be a primary cause of this problem. After all, you can’t save as much for retirement when you earn less. Thirty years ago, women earned about 62 cents for every dollar earned by men. Now that figure hovers around 80 cents per dollar. Clearly, salaries for women are improving, and 40 percent of wives actually make more than their husbands.

Even so, current salaries don’t equate to lifetime earnings. Over a lifetime, women still earn significantly less than men, probably due to the fact that women tend to be the ones who take time away from their careers during childbearing.

So, while things are getting better for women, there is still some concern over whether most women have enough money stashed for retirement. The best course of action is for women to take a more proactive approach, and contribute the maximum allowable amounts to their employee-sponsored retirement funds during times they are working. Women should also research all of the options available to them, and take advantage of opportunities like employer matching programs.

Taking an active role in the household’s financial decisions is another way for women to protect themselves. Divorce can happen at any age, and a retired woman who has played a passive role in household finances is at a clear disadvantage. It’s important for women to have their own retirement accounts, but to stay on top of joint investments as well. A woman who finds herself unexpectedly single will be able to confidently face retirement if she has her own investment account, has regularly met with her financial advisor, and has a solid plan in place for any scenario.
Sources:
Insured Retirement Institute, 2012
Time.com March 26, 2012
13407-2014/5/15


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This information has been provided by a licensed insurance professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting the insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: www.NAMCOA.com .