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Women have it tougher than men. I say the generally, but it still holds water to this day and even from planning for retirement has merit. There are a few reasons why, and retirement revised sights some extensive reasoning and studies into this theory. I’ll cover the points I agree with.
One of the reasons given to the lack of security in retirement for women was caregiving. Caregiving, whether for aging parents or children, often cuts into earnings and destabilizes retirement plans, and two thirds of caregivers of adults over age 50 are women, according to the National Alliance for Caregiving.
Additionally, many women still earn lower wages than men in many occupations. In 2010, women across all occupations earned 81% of what men earned, according to the U.S. Bureau of Labor Statistics. In retirement, lower income translates to smaller Social Security benefits or defined benefit pension payments, along with smaller balances in 401(k) accounts, IRAs, and other retirement-savings vehicles.
Women are less likely than men even to have access to a workplace retirement savings plan. An annual survey on retirement by the Transamerica Center for Retirement Studies shows that 70% of women currently have access to a workplace retirement plan, compared with 79% of men.
These are some pretty good reasons, but what makes it worse, is longevity. Women typically live longer than men, which means these lower savings have to last longer. Kind of a double whammy…living longer is great, unless you can’t afford it.
One way to help take more control of the planning process is to talk to your spouse, and form a plan built for both lives. Another is to pay mindful attention to social security benefits. Social Security is the sole earnings of 42% of women over the age of 62. Take into account healthcare cost as you get older cannot be overlooked as it will be one of your larger expenses. One note I have never put much thought into was to let your children come second. Sounds terrible, I know, but if you look closely, makes sense.
Research shows that many parents rob their own retirement plans in order to provide financial assistance to children. That can leave parents in the humiliating position of exhausting their assets late in life and relying on children for assistance.
Women have it tougher than men. I say the generally, but it still holds water to this day and even from planning for retirement has merit. There are a few reasons why, and retirement revised sights some extensive reasoning and studies into this theory. I’ll cover the points I agree with.
One of the reasons given to the lack of security in retirement for women was caregiving. Caregiving, whether for aging parents or children, often cuts into earnings and destabilizes retirement plans, and two thirds of caregivers of adults over age 50 are women, according to the National Alliance for Caregiving.
Additionally, many women still earn lower wages than men in many occupations. In 2010, women across all occupations earned 81% of what men earned, according to the U.S. Bureau of Labor Statistics. In retirement, lower income translates to smaller Social Security benefits or defined benefit pension payments, along with smaller balances in 401(k) accounts, IRAs, and other retirement-savings vehicles.
Women are less likely than men even to have access to a workplace retirement savings plan. An annual survey on retirement by the Transamerica Center for Retirement Studies shows that 70% of women currently have access to a workplace retirement plan, compared with 79% of men.
These are some pretty good reasons, but what makes it worse, is longevity. Women typically live longer than men, which means these lower savings have to last longer. Kind of a double whammy…living longer is great, unless you can’t afford it.
One way to help take more control of the planning process is to talk to your spouse, and form a plan built for both lives. Another is to pay mindful attention to social security benefits. Social Security is the sole earnings of 42% of women over the age of 62. Take into account healthcare cost as you get older cannot be overlooked as it will be one of your larger expenses. One note I have never put much thought into was to let your children come second. Sounds terrible, I know, but if you look closely, makes sense.
Research shows that many parents rob their own retirement plans in order to provide financial assistance to children. That can leave parents in the humiliating position of exhausting their assets late in life and relying on children for assistance.
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