Things Women Should Consider When Retiring

Because women face a different set of challenges when it comes to retirement, they also need to have different approaches when it comes to preparing themselves for the day that they retire. Understanding your key concerns are vital for having a workable and doable retirement plan.

We have already tackled some of the reasons why women are different from men when it comes to retirement. We already know that women, in general, still earn less than their men counterparts. It is also a fact that women fewer years and oftentimes interrupt their careers just to raise children which often results to not qualifying for various retirement plans or enjoy the full benefits of such plans.

It is said that for every year a woman takes leave from work, she needs to work five extra years for her to replace the income lost in that one year of absence, to regain the much needed coverage, and to qualify for any kind of career promotion. Such are the burdens that women have to face. This is the reason why only 64% of women feel confident when it comes to their retirement plans. But according to a much recent study, from the 60 million women who are wage and salary earners in the United States as of March 2005, a mere 47% actually indicated that they have participated in a retirement plan.

To better understand how a retirement plan works and how its benefits will be maximized by women, they need get a grasp and working understanding of the four major pillars in investment on one’s retirement. The four are Social Security Benefits, Pensions, Savings and investments; and the money they earn from continued employment.

Social Security benefits

It should never be a common practice to rely solely on social security benefits to make up a retirement plan. The various social security benefits should only serve as backup or as supplements to the women’s savings, pension and income. When we talk about Social Security benefits we talk about 3 kinds, the retirement, survivor and disability benefits.

Retirement benefits – this refers to the monthly benefit or financial assistance that one receives after retiring from a job. Usually the retired employee or an identified member of the family receives the retirement benefits.

Survivor benefits – this benefit refers to the money or benefit given to a family of someone who died and was paid into Social Security.

Disability Insurance – a monthly assistance given to workers and/or their families because of an incurred injury or disability which prevents them from working for a certain period of time.


Pensions like Social Security benefits are important parts of a retirement plan. There are two kinds.

A Defined Benefit Plan – which promises to pay a certain amount on a monthly basis to the retiree

A Defined Contribution Plan – this kind of plan is dependent on the company, since the company will be the one paying for the plan annually.

Savings and investments

A previous study indicated that women in general are bad in investing. The reason: they lack the knowledge on proper investments and the right procedures to undergo.

Money from after retirement jobs

Women will always try to look for jobs after retiring from their work.


Posted by Ardent Editor on Jun 12 2007 in Women & Retirement

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