4 Reasons Women Are More Vulnerable in Retirement

Women in Retirement

 

Longevity – It’s a known fact that women typically out life their counterparts (men). Basically women outlive men and their average longevity age is 81.2 vs. men’s at 76.4. The longer you live, the more likely you might outlive your retirement assets.

Income Inequality – As a whole women earn less than men therefore they have less investment assets to work with during retirement such as their 401k plan at work. Women earn less than men even when they have similar levels of education.

Health Care Costs – Women are more likely to spend a greater amount of their retirement assets on health issues especially chronic illnesses. Because women live longer they naturally will incur more health related costs.

Caregiving – Women also are more likely to take on the expenses of caring for their children and aging parents.

Considering the factors mentioned above, careful financial planning is essential for women to assure that they do not run out of money during retirement.

Projecting retirement goals and needs during retirement years is important along with maximizing social security benefits and other sources of income.

Bottom line every person needs to have a written retirement plan set with realistic goals and projections for the future.

 

Daniel F. Iuculano, AAMS CMFC

Accredited Asset Management Specialist

Chartered Mutual Fund Counselor

 

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