Women are living longer and enjoying more active senior years than ever before. Unfortunately, just as this door to unprecedented leisure time is opening up, the traditional means of funding retirement – social security and pension plans – are becoming less able to meet retiree’s needs.
The Social Security Administration has warned that “unless many Americans increase their personal savings rates, they may retire with inadequate retirement assets.” But while Americans in general are not saving enough for retirement, women in particular feel the most impact from this. Women need to make sure they’re saving enough outside of an employer retirement plan.
Obstacles to a secure retirement abound for women. In addition to a longer like expectancy:
On average, women still make less than their male counterparts.
More than 25% of working are employed in part-time positions.
Time out of the work force will reduce your pension benefits.
Wachovia’s research found fewer than half the women we surveyed felt confident that they were saving enough for their retirement. Ironically, this is not from a lack of skill or resources. Rather, in trying to balance multiple priorities, women traditionally assign second of third place to financial planning issues like investments and retirement.
Women have what it takes when it comes to investing. They:
Do homework before making decisions
Admit if they don’t completely understand
Ask for help, choose a personal advisor