Women and Retirement

shutterstock_50492602Retirement can be perceived differently, depending on who you are talking to. For the well-prepared, retirement is usually anticipated with excitement. For those who are ill-prepared, retirement can be an increasing concern. Women may also look at retirement in a different way. There are certain factors that may make retirement for many women a bit more challenging. Here are some of them.

Longer average life span
On average, women are known to live longer than men. While this may be considered as a benefit by many, a longer life span comes with added implications, especially when it comes to retirement. The added years mean added costs during retirement. Women need to save more in order to enjoy a more comfortable retirement. But the next factor may make it a more challenging task.

Lower average salary
Compared to men, women earn less on average. This can affect how they look at retirement. In such a situation, women need to save up early in order to set aside a comparable retirement nest egg. The lower earnings also affects women in other ways. Because their salary is lower, women also end up enjoying lower Social Security benefits, further affecting retirement.

Reliance on men for financial planning
Women usually depend on their husbands to plan their financial future as a couple. This can put women at a certain disadvantage. Most women defer the task to their husbands. According to a study, only 27 percent of married women take control over their financial and retirement planning. This dependence can also put them in a very vulnerable spot, especially when the husband passes away. Women should try to take on some added responsibilities when it comes to their financial and retirement planning as a couple. It also helps for women to practice a certain level of financial independence as a way to make them feel less vulnerable to economic circumstances.

 

Posted by Ardent Editor on Jul 10 2015 in Women & Retirement Tags: , , ,

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