Welcome to our new Women and Wealth blog! Arlene Brown and I are going to write regular articles addressing women, finance, and their concerns. You might have heard us doing segments on The Investor Coaching Show on 99.7 FM WTN directed specifically to women, or attended one of our fun, interactive Women, Wealth and Wine—Finding Your American Dream! workshops around the area.
This is a new initiative we implemented because we have found that there is a great hunger by women to become more educated about their finances and help them plan for a more secure future. Why is this important?
Women face several risk factors that men generally do not face.
According to the Institute for Women’s Policy Research study, “Women’s Economic Status in the States, 2018,” women tend to earn 83 cents for every one dollar that men earn—so they are earning less over their lifetime that can be saved for future needs. Since Social Security payments are based on earnings during one’s work life, this also means that women typically receive less in social security payments when retired. Women earn about 30% less than men in Social Security according to “Sources of Income for Older Persons in 2014” (Public Policy Institute, Date Digest, AARP). The average man earns $1,493 in social security and women receive only $1,152 on average from Social Security. Social Security is not designed to be a complete retirement income funding source. It is really only intended to fund approximately 40% of retirement income.
Women are less likely to receive a pension.
Only 43% of women earn and receive a pension in retirement, according to the U.S. Census Bureau, “Current Population Survey,” March 2015.
Lastly, women statistically live longer than men!
50% of men aged 65 will live past age 80, while 50% of women aged 65 will live past age 84, according to the Social Security Administration. As a result, women tend to make less during their working career, receive less benefits from Social Security and pensions throughout their lifetime, so the amount of money they receive generally is lower but needs to last longer!
Since women receive less from these funding sources and need more money typically than the average man, this means that women really need to plan ahead to help and save even more money than men to ensure a secure retirement!
The good news is that statistically, women do save more money than the average man. The sooner you start saving, the more your money will grow and you can Relax About Money™ and your retirement. We are here to help! Schedule a 15-minute call with one of our advisors by clicking here.
Written by Anne Sawasky, ChFC®, J.D.
*Advisory services offered through Paul Winkler, Inc. (‘PWI’), a Registered Investment Advisor. PWI does not provide tax or legal advice: please consult your tax or legal advisor regarding your particular situation. This information is provided for informational purposes only and should not be construed to be a solicitation for the purchase of sale of any securities.