![]() ![]() But even when women save aggressively, they are often saving for things other than their own retirements! I’ve known women to ignore planning for their futures to make sure instead that there is money for their child’s college tuition or first home. Talk to an expert who can focus your efforts for optimum results. Don’t waste time and energy floundering around the want ads. It’s worth your time to consult with a vocational expert to see where your education and skills command the highest income in the job market where you live. Re-entering the work force, you want to earn the most you possibly can. Unfortunately, many of them don’t fully realize the financial ramifications of that decision until it’s too late. To do a stint as a stay-at-home-Mom, women sacrifice their peak earning years and career momentum. Taking time away from paid work is a no-win situation, financially. Not only do most women earn less than men, but many women re-entering the job market after time away will find that they simply don’t command the income they once did. Wherever you can cut back on your current spending in favor of saving for the necessities of later life, do it. You might need to put off major purchases that aren’t absolutely necessary – no more trading in your car for a new one every three years, for example. You might need to live somewhere less expensive. Many divorced women simply can’t live as they used to while married. Also note that if you were married less than 10 years, you won’t be able to collect Social Security benefits based on your ex-husband’s earning record.Īs painful as it can be, the reality is that divorce deals a significant financial blow – and women, unable to recoup those losses in the job market as quickly as their ex-husbands can, take the blow harder and suffer longer from it. With alimony “reform” sweeping the nation, permanent alimony which would have provided a divorced woman some financial security in her later years has been all but eliminated. For the divorced woman, it may be life-changing. Earning less means not only do women have less money available to set aside for retirement, but also that their Social Security benefits will be significantly less than what their male counterparts will receive.įor the married woman, this is troublesome. Women earn an average of 77 cents for every dollar earned by men. Prioritize needs over wants in your spending, and make no mistake: Retirement savings fall squarely into the “need” column. It’s not something you do with whatever money you happen to have left over at the end of the month rather, your savings should be a high priority. Think of retirement savings as a commitment. Long life is a good thing! But, you’ll need to have more money saved to support those additional years. Women live longer than men therefore, their retirements can be expected to last longer and cost more. For women, that average life expectancy is 86.6. ![]() The Social Security Administration reports that a man reaching age 65 today can expect to live, on average, until age 84.3. Here’s some of what you’re up against, and here’s how you can strategize to succeed in spite of it. Planting your head in the sand is the biggest mistake you could make.įor every obstacle you’ll face, there’s a strategy to help work through it. Is retirement too daunting even to contemplate? Should you resign yourself to financial dire straits in your future, hoping someone else will take care of you? Absolutely not. For you, the financial challenges posed by retirement are both multiplied and magnified. ![]() If you are divorcing, though, you’ll be solely responsible for your own financial well-being into your later years. If you’re married, there is at least some security and comfort in being part of a team that is planning to retire together. It’s not fair, but it’s true: Financially healthy retirement is more difficult for women to achieve than it is for men. ![]()
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