Sunday, March 29, 2015

Women Need to Think Serious about Retirement Planning

Women tend to be savvy with couponing, budgeting and hunting down sales.  You see a plethora of tips on Pinterest about these things. However, women tend to pass the buck on long term financial planning such as retirement.

Why is retirement planning a big deal for women?

Well for starters, women live longer.  They outlive their partners well into their 90s. What is 90 minus 65?  25 years.  If you think about it, that is just as long as a second career.
The longer you're alive, the longer you need a source of income to keep up with the expenses that come with old age.

Social Security benefits and Medicare isn't going to cut it for your golden years.  It will not be enough to live off and not enough for your medical expenses.

If you are working and only contributing up to the employer match (3% to 6%), it won't be enough.  You need to contribute at least 10 % of your paycheck to a retirement plan.

If you are at home and dependent on a spouse for your livelihood, he needs to contribute at least 20% of his paycheck to a retirement plan for you and for him.

The majority of women over 65 today worry silently that they will outlive their retirement savings.  For many it will happen.

If you are making a lot of financial sacrifices now to be home with your children, you may be struggling to contribute to retirement on a regular basis.  If this is the case, you should be thinking about going back to work sooner than anticipated to a job that allows you to contribute to a retirement plan.

The longer you delay retirement planning the closer you are to eating dog food at 85.

More informative links here for women and retirement planning.

Wiser Women

Social Security: What Every Woman Should Know