What Women Should Consider Before Retirement Planning

Women are living on average 6 to 8 years longer than men. For many couples, this becomes a growing concern as they age. Our parents planned much differently. Living to 75 amounted to a nice long life and Social Security was often supplemented by a pension. Not only does the loss of spouse (and their income) become an issue, but the increasing life expectancy demands longer planning. The Social Security Administration estimates that today’s average 65-year-old woman will live to age 86½. Though not everyone will make it to 86½, a 20 or even 30-year retirement might likely be in your future.

 Are you prepared for a LONG retirement? How about a 30-year or even 40-year retirement? Don’t laugh; it could happen. The SSA projects that about 33% of today’s 65-year-olds will live past 90, with approximately 14% living to be older than 95.

Start with good questions. How can you draw retirement income from what you’ve saved? How might you create other income streams to complement Social Security? And what are some ways you can protect your retirement savings and other financial assets?

Enlist a financial professional. The right person can give you some good ideas, especially one who understands the challenges women face in saving for retirement. These may include income inequality or time out of the workforce due to childcare or eldercare. It could also mean helping you maintain financial equilibrium in the wake of divorce or the death of a spouse.

Invest strategically. If you are in your fifties, you have less time to make back any big investment losses than you once did. So, protecting what you have may be a priority. At the same time, the possibility of a retirement lasting up to 30 or 40 years will likely require a growing retirement fund.

Consider extended care coverage. Because women have longer average life expectancies than men, they may require significant periods of eldercare. Medicare is no substitute for extended care insurance; it only covers a few weeks of nursing home care, and that may only apply under special circumstances. Extended care coverage can provide a huge financial relief if the need arises.

Claim Social Security benefits carefully. If your career and health permit, delaying Social Security can be a wise move. If you wait until full retirement age to claim your benefits, you could receive larger Social Security payments as a result. For every year you wait to claim Social Security, your monthly payments get about 8% larger.

Retire with a strategy. As you face retirement, a financial professional who understands your unique goals can help you design a holistic retirement approach that might serve you well for years to come. At RGA, we consider all the above concerns for anyone we meet with. Each strategy is custom-crafted based on the unique needs of each person, meaning you’ll NEVER receive a cookie-cutter approach. Discover what a holistic retirement plan can look like for you by clicking the link below, call 1,800-467-8152, or email info@ronaldgelok.com



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