Our Blog

Longevity Rules: Why long-term retirement planning is more important for women

Retirement planning is one of the most important guarantees an individual can make to ensure that their retirement goes smoothly...


Retirment-Planning-Women-Investors.jpg

Retirement planning is one of the most important guarantees an individual can make to ensure that their retirement goes smoothly and with as few interruptions as possible. However, women are having to take into consideration some extra factors in retirement planning that men aren’t necessarily as concerned about.  The biggest concern that women are faced with is an extended longevity (1). Statistics are still showing that, on average, women tend to live 5-10 years longer than men.  There is also still a very real and very pronounced wage difference between female earners and their male counterparts (2). Combine these realities with the fact that nearly 50% of women over 65 are still facing crises regarding outliving their financial resources (3), retirement planning is critical for a happy, healthy retirement for women.

While medical technology is improving at a rapid rate, the effect on retirees is twofold.  There is both a better chance of living longer throughout one’s retirement, as well as a greater risk of outliving those retirement savings and investments. While this is a problem for retirees across the board, its effects tend to be more pronounced for women looking to begin or in the midst of their retirement.  This improved technology is gradually extending an already relatively long retirement stage.  Fortunately, this doesn’t have to be a negative.  With appropriate planning and investing, those extra years can be the extra time you need to get all you can out of life.

Unfortunately, this isn’t as easy as it should be. Released in April 2014 a study by the National Partnership for Women and Families noted that there’s still a tremendous differences in wages between median salaried female and male wage earners. The former are earning on average, roughly $11,100 fewer annually than men in the same bracket. While there has been some progress in decreasing the wage gap, it’s estimated that, assuming the gap shrinks at the same rate, it will be another 40+ years before women are paid at the same levels as men. What this ultimately means in the short term, is that women need to be that much more careful with their investments and need to start planning for their retirement much earlier than men do.

The unfortunate truth of the matter is women are at something of a disadvantage when it comes to retirement.  Not only are they more likely to outlive those closest to them, they’re also in an economically disadvantaged position due to society being slow on fully establishing gender equality. The effects are well-documented, and while working to change that is a good long-term solution, the best way to ensure personal stability in the future is to start planning as soon as possible.

Sources:

1. http://content.time.com/time/health/article/0,8599,1827162,00.html

2. http://www.huffingtonpost.com/2013/04/09/women-and-equal-pay-wage-gap_n_3038806.html

3. https://www.jec.senate.gov/public/_cache/files/0779dc2f-4a4e-4386-b847-9ae919735acc/gender-pay-inequality—-us-congress-joint-economic-committee.pdf

DISCLAIMER: This website is for informational purposes only and does not constitute a complete description of our investment advisory services or any past performance. This website is neither a solicitation nor an offer to sell securities or investment advisory services except where we are appropriately registered or exempt from such registration. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we and our suppliers believe to be reliable.  However, we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are any indication of future performance. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY ‘LINKED’ WEBSITE.

Back

DISCLAIMER: This website is for informational purposes only and does not constitute a complete description of our investment advisory services or any past performance. This website is neither a solicitation nor an offer to sell securities or investment advisory services except where we are appropriately registered or exempt from such registration. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we and our suppliers believe to be reliable.  However, we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are any indication of future performance. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY ‘LINKED’ WEBSITE.

You may also like

Eating the Estate Planning Elephant… One Bite at a Time, Part I

No one wants to look at it, no one even wants to think about it, yet there it looms —…

Eating the Estate Planning Elephant… One Bite at a Time, Part II

You may have been cohabitating with your proverbial estate planning elephant for some time now, but if the first part…

5 Steps You Can Take Now to Improve Your Retirement Income

If you’re a working American born anytime between 1946 and 1991, the research, analysis and more importantly, the five straightforward…