Who’s Ready for Retirement?

Financially, women are much less prepared for retirement than men. Adding to the dilemma is the fact that women live longer, therefore need finances for a longer period of time. Studies show that less than seventy per cent of the women in America have a retirement plan.

Since worldly media pushes youthful appearance for women more than men, women tend to spend more time and money on trying to act and look younger. They spend less time even considering the fact of aging than men do.

Although many women are now a viable segment of the work force, there is a throwback to the thinking that the man of the house will plan for a couple’s retirement. Since there are so many more single women, the reality is that there is no man to do the retirement planning. It has not yet become a priority for women as they still subconsciously think a man might come along and he will have all his ducks in a row for their life at the time of retirement.

Another fact is that usually need even more savings than men. This is because women live seven years longer on average, they often have more medical needs over a longer period of time and many must hire help with home upkeep.

Add to the mix that women usually earn less, so their pensions are smaller. According to the Employee Benefit Research Institute, in 2001 (the most recent figures available) a 65-year-old man received $14,046 in retirement, while a retired woman earned just $8,224.

Where women work also plays a part in the retirement planning. Manufacturing jobs are the most likely to offer retirement benefits, however more men work in these types of jobs as less than 20 percent of working women are in manufacturing. Also, women take more time out off from the workforce to care for children and aging parents which can mean a lot less in pension and 401(k) savings.

The solution: Women, whether married or single, need to begin saving and planning for retirement as soon as they become adults. They need to seek help from financial planning seminars, books and employers to prepare them for their own personal retirement aside from what a current or potential mate may provide.