There are a lot of areas where women are making waves in the fight for equality and acceptance. But one area women still seem to be slacking is in the arena of planning for retirement.
According to a Wells Fargo Retirement Fitness Survey released in December, 2010, Americans have less than seven percent of their required retirement funds saved away by the time they need it.
Whether women rely too much on their male counterparts for retirement savings or they just don’t know how to properly put money away for retirement, somewhere there is a clear disconnect.
A major issue for couples trying to save money is their lack of understanding what effect widowhood plays on the other. Anna Rappaport, co-author and researcher on a study from the Society of Actuaries on the Impact of Retirement Risk on Women, noted that 85 percent of women over age 85 are widows, compared to 45 percent of men.
Unless a couple has a substantial fortune, when one spouse dies and doesn’t leave the necessary transitionary money (cost for funeral, medical bills, etc.), it can really take its toll on the living spouse. Often, that living spouse is the woman.
Because women have longer life expectancies and often marry men several years older than themselves, it is not uncommon for women to have periods of widowhood of 15 years or longer. For many, the death of a spouse is accompanied by a decline in their standard of living.
While better planning for retirement is not solely a woman’s issue or something women need to improve on, the special set of circumstances women face do make it particularly challenging for women.
Another trend occurring more and more is that women don’t participate in keeping the family finances and thus, have no clue how much savings the couple has or how to further those savings when that time comes. Financial advisors are having to help women with damage control over their finances because once the male spouse passes, most women have no clue aboutthe state of their funds and often, the funds are dwindling fast.
Another alarming find from the Society of Actuaries report is that an analysis of the National Long Term Care Study shows that 30 percent of the residual life expectancy at age 65 for women were spent in a state of chronic disability. Women are more likely to live for extended periods of time requiring medical assistance and racking up large health care bills.
For example, in-home nursing care can cost up to $500 per day and living in a nursing home can cost $15,000 a month. Lofty numbers, for sure, which if not planned for, can run the money well dry, well before you intend. It is wise to consider buying long-term care insurance as a part of retirement planning.
Women need to take control of their retirement planning so that when the day comes, women can live fulfilled, enriched lives, not lives bogged down by financial burden. If women plan ahead and take control of their retirement savings early on, they can be secure and taken care of later in life.
Retirement Planning And Its Challenges For Women
http://blogs.forbes.com/meghancasserly/2011/02/09/retirement-planning-and-its-challenges-for-women/
WISER
http://www.wiserwomen.org
The Impact of Retirement Risk on Women
http://www.soa.org/files/pdf/research-key-finding-impact-retire-women.pdf