All
of us would like to think we will enjoy a comfortable
retirement. If you’re a woman, however, you
might be significantly more nervous than your
male peers about life as a retiree.
This
fear may not be entirely justified, but, in
any case, women can greatly improve their outlook
for retirement by understanding where they are
now–and how to get where you want to go.
But
first, you may have to overcome both fear and
a financial “gender gap.” Consider these findings
from recent surveys conducted by Harris Interactive:
·
Forty‑six percent of the women
surveyed said they worry about losing all their
money and becoming destitute. Surprisingly,
this figure rises to 48 percent among women
with incomes of $100,000 or more.
·
Women were almost twice as likely as
men to worry about money and to doubt their
capacity to invest and plan for the future.
·
Only 10 percent of women said they feel
quite secure about their finances.
These
figures, while disturbing, at least partially
reflect some basic realities of women’s lives.
First,
women typically outlive men by nearly seven
years, according to the U.S. National Center
for Health Statistics–and a longer life means
more expenses. Also, 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. This time away from the workforce results
in women accumulating much less money in their
employer‑sponsored retirement plans.
Of
course, if you are married, many of your financial
assets are likely commingled with those of your
husband. But that doesn’t mean that you can
abdicate responsibility for your financial future.
Some 80 to 90 percent of today’s women will
be solely responsible for their own finances
at some point in their lives, according to the
National Center for Women and Retirement.
So,
what can you do to boost your confidence in
your financial management skills? For starters,
take a close look at all potential sources of
retirement income: Social Security, savings,
investments
and retirement plan distributions. Estimate
about how much you might have available for
your retirement years.
Next,
try to envision your ideal retirement lifestyle
and put a price tag on it. For example, if
you would like to continuously travel the
world when you retire, you’re probably going
to need more money from your retirement funds
than your neighbor who wants to stay home,
pursue hobbies, and possibly even open a small
business.
It’s
not always easy to plan, save and invest for
retirement. That’s why you may want to consider
working with an experienced financial professional–someone
who knows your risk tolerance, time horizon
and long‑term goals, and who can recommend
the appropriate investments and strategies.
Learn
as much as you can about every aspect of your
financial situation. You’ll boost your confidence
about having sufficient resources for retirement–and
you’ll probably enjoy it more when you get
there.
