Are you saving for your retirement? No? Wish you were? Will get round to it eventually? Time to start thinking about the future: The Women's Institute for a Secure Retirement (WISER) says that millions of US women may run out of retirement savings.
A report published by the Society of Actuaries, and sponsored by WISER, concludes that men and women generally perceive the risks associated with retirement in a similar way, but that there are significant differences in how they experience those risks. Because women live longer than men (at least 5 years on average), there is a greater risk of exhausting assets: put simply, they are going to be retired longer. Women are also not giving enough thought to the costs of long-term care in their older years. Married couples need to give more thought to preserving benefits for a surviving spouse, and not just thinking about their joint plan for retirement. Today, one third of women over age 62 are collecting social security benefits based solely on the earnings of their spouse.
To see a paper summarizing the the survey findings, go to http://research.soa.org/WomensShortReportfinal.pdf
Read more about the Society of Actuaries complete survey at http://preview.tinyurl.com/39zsaq
It ain't sexy, but it's important. Think about it. Do you want to be poor when you are old, ladies?
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Just wanted to reiterate your point, Michelle, that while this is not a sexy topic, it is critical. One of my many professional hats is working in a retirement consulting firm. There is study after study that women are less prepared for retirement than men. Another factor (in addition to those mentioned above) is that women tend to risk less than men. So, often, men have a larger nest egg because they've invested in ways that yield higher returns. Also so many companies are moving to retirement plans that place the responsibility and risk in the hands of employees - and yet few of us have the financial literacy to adequately make decisions about such risks.
Anyway, thanks for drawing attention to an important issue related to the economic independence of women!
Victoria
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