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Women & Investing Plan now to be “unemployed” during retirement |
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According to the 2000 Retirement Confidence Survey, almost two-thirds of women anticipate working
in their retirement years.
The Survey, sponsored by the Employee Benefit Research Institute (EBRI), found that the number of women who expect to be among the “working retired” has increased nine percent in the past two years. If you don’t plan, or want, to be among that 66 percent who work right through retirement, get to a computer right now, click on www.usfunds.com and start planning! Within the “ Tools” section of our homepage, you will find not only a retirement worksheet but also a 401(k) calculator, a compound growth calculator and a regular payments calculator designed to encourage routine savings for retirement. While there are some very legitimate reasons for continuing to collect a paycheck in the “golden years” – staying active and involved, receiving health insurance, earning pocket change – there are equally compelling motivations to reward yourself for all the important things you may have put off doing during your working years. Activities such as travel, hobbies, more family time and pursuing educational opportunities are often relegated to the category, “I’ll get around to it when I retire.” The Survey also found that 1) men are more confident than women that they will have enough money to live comfortably through retirement; 2) 75 percent of women vs. 82 percent of men said they are somewhat or very confident they are doing a good job of preparing financially for retirement; and 3) 64 percent of women vs. 72 percent of men surveyed are somewhat or very confident they will have enough money to take care of medical expenses in retirement. Traditionally, women are more conservative investors than their male counterparts, possibly because it was the accepted norm for many years that husbands would handle all the financial matters in a marriage, including investing. Their nurturing roles within the family unit may also have discouraged some women from being risk-takers. However, reality necessitates that women take responsibility for their own financial futures. And the best time to begin is NOW! (See the chart above for an illustration on the power of compounding and the benefits of starting early to invest.) Statistics indicate that more women will be solely responsible for funding their own retirements than ever before, as a result of divorce, outliving spouses or choosing not to have children. Additionally, women are still earning less than men for comparable work, despite years of efforts to close the pay gap. That means the percentage of pay earmarked for 401(k), 403(b) or other employer-sponsored retirement savings plans equals fewer dollars, i.e. less savings at the end of the typical woman’s working career with which to retire. The EBRI Survey also indicated that 1) while the percentage of women who say they have personal savings for retirement has increased by 15 percent since 1998, women still trail men in personal savings for retirement 72 percent to 79 percent; 2) only 49 percent of women surveyed in 2000 said they have completed a retirement savings needs calculation vs. 58 percent of men; and 3) 41 percent of women responded that they are on track or ahead of schedule to achieve their retirement planning/savings goals, as compared to 53 percent of men. To get started now, please call 1-800-US-FUNDS or go to www.usfunds.com for information on investment products, our funds, applications and prospectuses, including charges and ongoing expenses. Please read the prospectus carefully before you invest or send money. And remember to try our financial planning tools when you visit www.usfunds.com. |
