Women face special challenges when planning for retirement. Because their careers are often interrupted to care for children or elderly parents, women may spend less time in the workforce and earn less money than men in the same age group. As a result, their retirement plan balances, Social Security benefits, and pension benefits are often lower. In addition to earning less, women generally live longer than men, and they face having to stretch limited retirement savings and benefits over many years.To meet these financial challenges, you'll need to make retirement planning a priority.
Begin saving now
(Paid Advertisement)To maximize your chances of achieving a financially secure retirement, start with a realistic assessment of how much you'll needto save. If the figure is substantial,don't be discouraged--the most important thing is to begin saving now. Although it's never too late to save for retirement, the sooner you start, the more time yourinvestments have to grow.
The chart below shows how just $2,000 invested annually at a 6% rate of return might grow over time:
If your employer offers a retirement savings plan, such as a 401(k) or a 403(b), join it as soon as possible and contribute as much as you can. It's easy to save because your contributions are deducted directly from your pay, and
some employers will even match a portion of what you contribute. If your employeroffers a pension plan, find out how many years you'll need to work for the company before you're vested in,or own, your pension benefits.Women struggling tobalance work and family sometimes shortchange their retirement savings by leaving their jobs before they become vested in their pension benefits. A financial professional can also help you evaluate your retirement plan options.
What's your excuse for not planning for retirement?
My husband takes care of our finances
Married or not, it's critical for women to take an active role in planning for retirement. Otherwise, you may be forced to make important financial decisions quickly during a period of crisis.Unfortunately, decisions that are not well thought through often prove costly later. Preparing for retirement with your spouse will help ensure that you're both provided for, and pave the way to a worry-free retirement.
I'll save more once my children are through college
Many well-intentioned parents put their own retirement savings on hold while they save for their children's college education.But if you do so, you're potentially sacrificing your own financial security. Your children have many options when it comesto financing college--loans, grants, and scholarships, for example-but there's no such thing as a retirement loan! Why not set a good example for your children by getting your own financesin order before contributing to their college fund?
I don't know enough about investing
Remember, you don't have to do it by yourself--a financial professional will be happy towork with you to set retirement
• Ossining resident Michael Salmon is a Senior Financial Advisor with Ameriprise Financial in Midtown Manhattan. Michael Specializes in Investment Portfolio Management, Retirement Planning Strategies, Estate Planning Strategies,Saving for Education Michael is an active public speaker and financial columnist. You can reach Michael at (646) 964-9470 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
