From Women less prepared for retirement than men, clarionledger.com
PDF: Women retirement men
If you were to ask a person in their middle 20s about their plans for retirement, most would probably shrug their shoulders and tell you they’d given it little thought. Even many people in their 40s (while most would have thought about it) wouldn’t really have a good idea about how they planned to finance their dreams once they leave the workforce. Perhaps unsurprisingly, many of us just aren’t very good at planning for the future.
But we should be. As lifespans increase and people stay in the workforce longer, people will need to have some way to finance their lifestyle in retirement. Most retirement planning experts agree that good planning can help you overcome rising prices, economic uncertainties, and taxes. Women are at special risk for several reasons, not the least of which is because, statistically, they can expect to live longer than the men in their lives.
A study this month by Transamerica’s Center for Retirement Studies points out a number of trends and highlights the need for women to get more involved and proactive about their retirement plans.
“Today’s women are better educated and enjoy career opportunities that our grandmothers’ generation could only dream about,” noted TCRS President Catherine Collinson. “Nevertheless, women continue to encounter challenges including lower pay, time out of the workforce for parenting or caregiving, and longer life expectancies that all contribute to unique challenges in adequately saving for retirement.”
Among the most alarming findings from the study: only about 10 percent of women are “very confident” in their ability to fully retire with a comfortable lifestyle, about half of the rate for men asked the same question. A poorly planned retirement can lead to an inability to deal with the unexpected circumstances — health conditions, sudden unemployment or unforeseen expenses — that could send you into a financial tailspin.
“The facts are startling and clear. Women must begin taking greater control and gain an understanding of their true retirement outlook,” Collinson said. “By confronting challenges head-on, women can acquire essential knowledge about how to achieve financial security and create plans that can help mitigate risks and steer them on a course for financial security and a more positive outlook for their retirement ambitions.”
Here are a few of the suggestions contained in the Transamerica report; more suggestions and a report summary may be found at http://bit.ly/2nX3ILo:
- Start saving on a regular, consistent basis. Even a few dollars can add up over years, thanks to interest and compounding.
- Participate in any retirement plan offered through your employer. Many offer matching contributions and other benefits, which can significantly increase your investment.
- Get educated about retirement investing, including learning about how to make your retirement savings last longer, and learn about the best (and worst) times to start drawing Social Security.
- Get help. Seek the assistance of a qualified financial planner to take a look at your goals and devise a strategy to make it happen. Agingcare.com has some great advice on how to find a good financial adviser at http://bit.ly/2nGYqrb.