Why Women Should Worry About Retirement More Than Men
Steve Wilcott
Women earn an average of 76 percent of men’s salaries. Does
that shock you? Yes, even in 2005, women are still way behind
the earning curve in corporate America. But rather than get
into a discussion of the fairness or unfairness of it all,
let’s concentrate on just what women can do to ensure that they
aren’t left out to dry in their retirement age!
After all, because women typically live seven years longer than
men, combined with the skyrocketing divorce rate, many women
will find themselves alone in their older years. (Statistics
show that most women are alone by age 56!) And the figures show
us that if a woman took out any time from her career to have
children (about seven years) she will pay for it later with
only 50% of what her male counterparts will receive in
retirement benefits.
Sigh.
So, what can a woman do to ensure that she can retire in style?
Start by taking a look at some of our suggestions below.
Save More
Most experts advise us to save about 10 percent of our income
in order to have a sufficient amount to retire one, but if you
are a woman, you should be saving closer to 12 percent. Because
of the reasons listed above, you simply won’t receive the same
amount in retirement pensions. What’s more, the way that social
security figures your monthly payment is based on the top 35
years of your work history. But guess what? If you were out for
seven or so of those years having children, they will be counted
as “O,” and the overall amount will be reduced.
Invest Wiser
Since you will need to save more by retirement age, you will
have to more careful with your investments. Know your risk
level, and then don’t exceed it under any circumstances!
Join the Team
Many employers offer investment and savings strategies such as
401K plans and savings matching programs, and if you are a
woman, you should plan to participate in all of them that you
can.
Use Cash, Not Credit
An alarming number of Americans today are in serious financial
trouble. This was made evident recently with the passing of the
new bankruptcy bill that will make it more difficult to file. A
record number of people filed for bankruptcy in anticipation of
it.
It’s easy to get into debt when people today spend an average
of $1.21 for every dollar they earn, but don’t be tempted to
fall into that trap. Instead, plan to put as much money away
for the future as you can.
Don’t Go It Alone
While it is important for all women to step up to the plate and
get serious about their finances, it’s equally important for
them to get advice from professionals. Talk to tax planners,
investment specialists and budget planners to get all the
advice that you can.
About The Author: This article provided courtesy of
http://www.penny-stock-guide.com
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