Women May Face Unique Retirement Issues
White Plains, NY (Law Firm Newswire) January 20, 2014 – Women face unique issues in planning for retirement.
On average, women live longer than men and are paid less, and there are still other financial planning issues that tend to affect women more significantly.
Lower pay is a key issue. Despite gains by women in the workforce, on average, women are still paid 77 cents on men’s dollar. Over a lifetime, that can add up to $500,000. Women are also more likely to leave the workforce temporarily to raise children or to care for an ailing parent. While their jobs may be protected in such situations, they are often only offered unpaid leave. In addition to that loss of income, the time off work can reduce any pensions and 401(k) contributions and lower the amount the worker pays into Social Security for retirement benefits.
Among those who reach the age of 65, women see a life expectancy two years longer than men’s. Married women tend to outlive their spouses by about three years. While a long life is a blessing, it often includes a longer retirement, which needs proper planning. Women nearing retirement age may want to consider putting off retirement for a year or two to add to their savings and maximize their contribution to Social Security.
In addition to longevity and pay, women also tend to invest more conservatively than men. Of course, conservative investment strategies avoid the risk of loss in a volatile market, but one can certainly invest too conservatively. The key is to diversify one’s investments. Just as all one’s assets should not be invested in the stock market, neither should it all be in cash. A diverse portfolio can provide protection from loss as well as a good return on investment.
Finally, many women planning retirement do not feel well-served by the financial planning industry. In a survey, women ranked financial planners dead last among 60 industries (even below used car salesmen), saying they feel that advisers talk down to them or do not address their issues.
Awareness of these issues is half the battle in addressing them. A good retirement plan and estate plan, combined with careful attention to saving, can result in a comfortable and secure retirement for any person, regardless of gender.
New York Contact:
Maria M. Brill
Littman Krooks LLP
New York City Office
655 Third Avenue, 20th Floor
New York, New York 10017
(212) 490-2020 Phone
399 Knollwood Road
White Plains, New York 10603
(914) 684-2100 Phone
300 Westage Business Center Drive, Suite 400
Fishkill, NY 12524
(845) 896-1106 Phone
- Assets Can Be Spent Down Safely to Qualify for Medicaid
Many seniors have to rely on Medicaid to pay the high cost of care in a skilled nursing facility. However, Medicaid is a needs-based program, which means that one must meet certain income and asset limits in order to qualify. Many seniors therefore find themselves needing to “spend down” their assets to become eligible, which [...]
- What Household Employees Should Know About the Affordable Care Act
By Tom Breedlove, HomePay by Breedlove Nannies, senior caregivers, housekeepers and other in-home providers are in a unique situation compared to most employees. They don’t work for a large company with a Human Resources department looking out for their best interest. So when it comes to something like purchasing health insurance, it’s not as simple [...]
- Rent Increase Exemption Expanded for New York City Seniors
Eligibility was expanded for the Senior Citizen Rent Increase Exemption (SCRIE) program, which provides a rent freeze to people age 62 or older who live in rent-regulated apartments and whose rent is more than one-third of their income. Previously, seniors were eligible for the program if their rent was $29,000 or less. The action taken [...]