It’s well known that on the average woman lives up to seven years. longer than men. This means that they have a greater need for retirement planning since they will be retired longer, and will need more funds.
The problem is that many women, during their prime earning years, bring home 70% of the dollars that a man in the same position earns. And women who worked part-time or left jobs to raise families may also have fewer resources at retirement age. Widowhood or illnesses also have drastic impacts on retirement funds.
Financial advisors agree that you’ll need 60- 90% of pre-retirement income to pay for each year of your retirement so that you may enjoy the same lifestyle you have today. Sadly, close to 45% of Americans over age 65 live on less than $15,000 a year and only 34% have annual incomes over $25,000, including Social Security. This is more a factor of failing to plan, rather than planning to fail financially. A sound retirement plan can help secure a more comfortable future- financially and emotionally. Married couples need to consider the wife’s financial security during retirement, in the likely event that she outlives her husband. For women who are single, retirement funding must also be a priority. Where will your retirement income come from? Once work ends, one must carefully plan for retirement income. Retirement annuities designed to offer guaranteed income for the rest of your lifetime, Individual Retirement Accounts (IRAs), 401K plans and using life insurance as an endowment vehicle are a few instruments to explore when creating a retirement plan.
Since each individual’s financial needs and risk tolerance differ, doesn’t it make sense to meet with someone who specializes in Retirement Financial planning, such as a Certified Retirement Financial Advisor (CRFA)?
Many women consider the safety and security of an annuity to provide the needed long term guaranteed income retirement can demand.