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A Woman's Financial Reality          

Planning for a comfortable and secure retirement is a daunting challenge for everyone, but even more so for women.  Despite the progress women have made in achieving higher levels of education and enjoying broad career opportunities, women continue to be at great risk of not achieving a financially secure retirement.  There may be several reasons for this:

  • Many women are in and out of the workforce during their lives raising children and caring for aging parents, or choosing to be fulltime homemakers.   
  • Time away from the workforce can diminish their competitive skills and erode their earning potential when they return. 
  • Many women work part-time and are less likely to have workplace retirement benefits. 
  • At work, women generally earn less than their male colleagues. 
  • Career women struggle to balance the demands of family life and their jobs, sometimes sacrificing promotions and pay raises, or choosing to support their spouses' career path over their own.
  • Women live busy lives due to the multiple roles they play leaving them little time to plan for themselves.
  • Divorce, widowhood, or being a single mother can create on-going financial hardships.
  • Women who are younger than their spoused typically retire soon after their husbands retire, which further reduces their potential lifetime income from all sources.
  • Many women often lack the confidence to make financial decisions because they feel unsure in their knowledge about investing and financial planning. 

Often the result is that women earn less lifetime income, save less, invest less, accrue smaller Social Security and pension benefits, and accumulate smaller 401(k) balances.  As a result, women may be less prepared financially for retirement. 

Yet, at the same time, women live longer than men, so their money has to last longer and pay for more years of expenses. 

  • In retirement, women are likely to spend much more on health care because of their longer life expectancies and of higher medical costs in older ages. 
  • Women also are likely to be caregivers to their husbands which can take a physical and emotional toll, and contribute to their own health issues. Daughters often take on the role of caregivers for their aging parents and in-laws, adding to the pressures in their own work and personal lives.
  • Long-term care costs can be extraordinarily expensive and take a toll on family finances as well. Often assets which were meant to generate retirement income are spent down caring for their husbands, leaving women with fewer resources to support their own needs. Adult children may provide financial support, which could affect their own family finances and retirement security.
  • Women are also potential recipients of long-term care themselves, often without the support of a spouse. 
  • Many women fear running out of money later in life and having to depend on their children. 
  • Adding to that concern is a little understood fact that the IRS requires owners of IRA's to deplete their accounts over their lifetime via Required Minimum Distributions. Typically the husband's IRA represents the couple's largest retirement asset, which he is required to spend down over his lifetime, leaving little remaining value to generate future income.
  • Furthermore, women generally have longer life expectancies than men and, if they are also younger than their spouses, they are likely to be on their own, possibly for many years, with only themselves to depend on financially.

Given these tough realities, planning for a secure retirement can be a formidable challenge for women. 

Here is the good news…

The good news is that women are making great strides towards improving their retirement readiness and financial confidence by taking specific steps to gain control of their financial future. 

Call me, or click HERE, and I’ll send you a free copy of "Sixteen Facts About Women's Retirement Outlook...and Eight Steps to Improve It".

My goal is to help you retire with confidence and financial security, so that you can focus on what you enjoy, rather than worry about your money.

Take control of your financial future today.   Call me.   I can help.

Your retirement is too important.

 

"Supporting Women's Financial Success and Empowerment"

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