Women Face Unique Issues in Retirement Planning
Virginia Beach, VA (Law Firm Newswire) March 9, 2015 – Women face a unique set of issues when preparing to retire, and their differences should be taken into account during retirement planning.
“Women typically live longer than men, but they tend to have less money to work with in retirement,” said Andrew H. Hook, a Virginia estate planning attorney with Hook Law Center, which has offices in Virginia Beach and northern Suffolk. “However, there are some steps that women can take to help ensure that their resources last through their retirement.”
On average, a woman earns 77 cents on every dollar that an equivalent man makes, which can add up to hundreds of thousands of dollars over the course of a lifetime. Women are also more likely to leave the labor force to raise children and care for family members, which means that many women have less time to build up a pension and save for retirement.
At the same time, the average woman can expect to live longer than the average man. A woman turning 65 today can expect to live to be 86.6 years old. A man turning 65 can expect to live to be 84.3 years old. Combined with the fact that the average heterosexually married woman is younger than her spouse, this means that married women are likely to outlive their husbands.
To improve their position, women can retire later if possible. For people born in 1960 or later, full retirement age is 67 years old. Waiting to retire until 67 allows women to maximize their Social Security benefits.
Savings and investment are another important part of the picture. Because women make less and often spend less time in the workforce, it is important for them to save more aggressively. In addition, women tend to invest more conservatively than men. Making bolder investment choices can help retirement savings grow.