Women, Retirement
and Social Security

Which of the following are reasons that Social Security is especially important to women:

1. Women are less likely to have pensions when they retire.
   
   
2. Women live longer than men, increasing chances of outliving their assets.
   
   
3. Women have average lower lifetime earnings because of pay-inequity and time out of the work force to care for family.
   
   
4. All of the above.
   
   

The answer is "4 - all of the above."

Women are living well into the eighties and many will spend more years in retirement than they ever did working. As you can imagine, this is placing a tremendous strain on the Social Security system. One of the best ways to be prepared for retirement is to prepare yourself.

"Forty-two percent of all women over seventy-five are living on less than $13,000 a year, and when Baby-Boom women retire, only an estimated twenty percent of them will be financially secure" according to a special report titled "Why Most Women Can't Afford To Retire" in the current issue of Ms. Magazine. It is estimated that only 20% of boomer women (born between 1946 and 1964 will be financially secure in retirement.

Here's some wisdom for women planning for retirement:

1. Statistics show that 80% of women will need to take charge of their own finances at some point in time. It is important for them to fully understand their personal finances and investments. If you don't understand your finances, ask your husband to explain them to you, enroll in a class and your local community college or learning center or check out some financially related books from the library.
   
   
2. It's never too soon to get started investing for retirement. The sooner you get started, the longer you have to let your money work for you. Don't put off saving. Just $25 a week starting at age 35 could add up to $100,000 to your nest egg before retirement. Start now, automate the process by having the money automatically deducted from your paycheck before you have a chance to spend or even see it.
   
   
3. Whenever you take a job, always ask about their pension plan. Find out how long until you are eligible, vesting requirements, will the employer contribute to and/or match your funds and if so, at what percentage rate?
   
   
4. Beware of taking Social Security early. Currently, the retirement age for full benefits is 65, and the earliest age at which one is eligible for benefits is 62. If you take your retirement benefits early, the result is reduced benefits by as much as 30 percent for as long as you live. The eligibility age for full Social Security benefits has been revised from 65 to 67 years of age, to be phased in by the year 2022.

Here are a few resources on Women and Social Security. Some sites represent different viewpoints. It is good to be aware of the different opinions and to realize that the more you can save for your own retirement, the better off you will be regardless of what happens with the Social Security System.

Interesting Links:

• The Social Security Administration: To read about available programs and to order a statement of your estimated future benefits, call (800) 772-1213 or check out their web site at www.ssa.gov
  
  
• Women's Social Security Issues
  
  
• More Social Security Issues: www.cpr4womenandfamilies.org/ss2000.html

Doris Dobkins is a money saving expert, author and speaker and has helped thousands of people find ways to save money and get out of debt.

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