Saturday, May 10, 2014
As Mother’s Day is right around the corner, many of us may still be searching for gifts. One gift to mom that could prove invaluable is a conversation about retirement planning. Women in general face a tougher retirement position than men since “[w]omen have lower lifetime income based on less time in the workforce.” Consequently, women have less in savings and lower Social Security benefits.
Experts point to steps that women can take to improve their retirement security:
- Maximize Social Security. The biggest way to improve retirement prospects is to get the most out of social security. This may mean waiting to claim benefits until full retirement age or longer. Each year of delayed filing converts to approximately 8 percent additional annual income.
- Start Early. It is crucial to start early on retirement savings as even small amounts saved now benefit from compounding over time. “Since many women face interruptions in work sometime during their career, starting to save on your first job can be incredibly meaningful.”
- Plan. It is difficult to make adjustments if you do not have a written retirement plan. Experts suggest consulting a financial adviser to help sort out any financial pressures that can affect retirement.
See Mark Miller, Why Moms—And All Women—Need A Winning Retirement Plan, Reuters, May 8, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.