Women & Retirement Planning
Having been raised primarily by my mother, I’ve witnessed the many challenges that women can face when planning their finances. Whether it’s raising a child and working full-time (or multiple jobs), coping with financial distress after a divorce, earning less than their male counter parts, or planning for a longer retirement, women often find themselves playing catch-up.
Although equal pay has been the law since 1963, women are still paid less than men — even with similar education, skills, and experience. The U.S. Census Bureau estimates that women are paid only 77 cents for every dollar a man was paid. Economist Evelyn Murphy, president and founder of The WAGE Project, believes the wage gap costs the average full-time U.S. woman worker between $700,000 and $2 million over the course of her work life*. Worse yet, this doesn’t factor in reduced pension and Social Security benefits during retirement.
Retirement is one area where you really need to be first in line. Since many women will spend upwards of 25 years in retirement,** it’s important to attain the retirement lifestyle you envision and that you’ve worked so hard to achieve. It’s also crucial to ensure your income will last throughout your years in retirement.
In my practice, I’ve found that women tend to be more engaged in their finances. Women tend to ask more frequent and better questions than men. They’re also more likely to take notes. The flip side to their insightfulness during our meetings is that they are often the least prepared in advance of our appointments.
As you can see, it is crucial that you act as soon as possible to prepare yourself for the future. You’re likely to have lived a life full of challenges and risen to the occasion to overcome those obstacles. When it comes time to prepare yourself for your years after work, make sure you once again rise to the occasion.
*Statistics provided by the Older Women’s League at www.owl-national.org and the National Committee on Pay Equity, 2008. ** U.S. Department of Health and Human Services: Center for Disease Control and Prevention (CDC): Health, United States 2008; Table 26: Life expectancy at birth, at 65 and 75 years of age by race and sex.
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This article is for informational purposes only and is not intended to provide specific advice to any individual. Consult your legal, tax, and/or financial advisor to determine what is appropriate for your situation.
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