|
If you are a senior woman, you need to
be diligent in managing your financial
resources to enjoy a comfortable
lifestyle in retirement. Fortunately, by
planning ahead and making the right
moves, you can help alleviate any
inequalities that may exist between you
and the men of the world.
Some disparities and
inequalities are:
Longer life expectancy
Both women and men are living longer
these days, but women still have the
edge: A woman reaching age 65 can expect
to live 19.8 years, while a 65-year-old
man can anticipate 16.8 years, according
to the U.S. Department of Health and
Human Services. More years of life mean
more expenses.
Lower earnings The
wage gap between men and women has
narrowed, but it has not disappeared.
Women who work full time still earn, on
average, only about 77 cents for every
dollar earned by men, according to the
U.S. Census Bureau. And women drop out
of the work force for an average of 12
years to care for young children or
aging parents, according to the Older
Women's League, a research and advocacy
group. That time away from the workforce
results in more than $500,000 in lost
wages.
Furthermore, there may be
lifestyle issues that put greater
financial pressure on senior women. For
example, when it comes to giving money
to their adult children, women may be
more generous than men. That is hard to
prove, but according to annual surveys
conducted by the Higher Education
Research Institute at the University of
California at Los Angeles, there has
been one major, consistent disparity
between the sexes over the past four
decades: Approximately two-thirds of
women say "helping others who are in
difficulty" is an essential or very
important life objective, compared to
only half of the men. Thus, it seems
plausible that retired women may be more
committed to providing assistance to
their grown children, which, of course,
could lead to additional financial
strains.
Taking all these factors
together, it is clear that, as
retirement approaches, you need to take
action. Here are a few suggestions:
1. Take advantage of your
retirement plan. Put in as much as you
can possibly afford to your IRA and your
401(k) or other employer-sponsored plan.
Every time you get a raise, try to
increase the amount you contribute to
your retirement plan.
2. Know how much to expect
from Social Security. Contact Social
Security (www.ssa.gov) to make sure your
earnings records are right and to find
out the size of your benefits checks.
3. Be aware of wills, trusts
and beneficiary designations. If you are
married, make sure you know what legal
arrangements have been made for you to
receive financial assets from your
husband should you outlive him, which,
statistically speaking, is likely.
4. Get professional help to
identify and quantify your retirement
planning goals, and to choose the mix of
investments that can help you make
progress toward those goals.
One final tip: Stay
informed. Whether you're single or
married, divorced or widowed, know where
you stand in regard to your savings,
investments and retirement plans. Your
financial future is in your hands; get a
good grip on it. |
