Mike Barber

Women, on average, live longer than men—this is a plain truth (http://ti.me/8T7Ll), a fact that must be taken into consideration when planning for retirement. Running out of retirement funds partway through is not only a risk, it’s an unfortunate reality for many women who’ve outlasted their investments. With this in mind, here are a few general guidelines for women looking into planning their retirement.

1. Start early.

Not only is there still a distinct wage gap between female and male earners, women are also faced with the fact that, in all likelihood, they will end up with a good bit of extra time that they will be needing those retirement funds. This makes it an absolute imperative to start planning for retirement early in order to counteract these two factors working in tandem.

2. Plan for extra time.

As noted in the first point, women are still anticipated to outlast men by a good margin, about 5 to 10 years. Many in the younger generations can expect that to remain, alongside the average age increasing due to advancements in technologies. While planning for a retirement portfolio that will last forever is out of the reach of most, being realistic about longevity is extremely important, and making a conservative estimate may leave you in dire straits down the road. Plan for longevity.

3. Know your caregiver options.

Women with male partners will likely outlast their significant other. While they will be there to administer care, unfortunately they afterwards find themselves bereft of any similar assistance themselves. Having a caregiver plan will help you sail smoothly throughout the entirety of your retirement and ensure that you have a helping hand as you age.

4. Know your personal risks.

There are a lot of statistics floating around about longevity, but statistics and averages are just that. As individuals they’re helpful as general guidelines, but are completely ineffective as rules. Knowing not only your family’s medical history and risks associated (or lack of risks which may contribute to a greatly extended retirement) but also knowing your own financial tendencies, will help you get a better grasp on how to manage your money and what factors you should alert your financial advisor of when making a long-term retirement plan.

Extended life shouldn’t have to be something you look at as a downside. Taking steps in the immediate future to ensure that you won’t be too strongly impacted by the unique problems you’ll encounter as a woman facing retirement, will help you make the most of those extra years.

Image courtesy of www.morguefile.com (http://mrg.bz/RyT5zL)

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Predicting the future is a rough sort of business to find yourself in, particularly with a world that’s begun changing more and more rapidly with every passing day. Unfortunately a lot of people on all sides of retirement find themselves having to do this very thing, having to try and figure out what directions the world will be taking them in once they’re ready to stop working. Luckily you’re not alone, and most of us are trying to maximize our options for our post-career years. Here are just a few of the ways in which retirement is changing in the next decades, to help you stay ahead of the curve:

A: Retirees are living longer than ever before.
Advancements in medical technology have increased the average life expectancy of individuals in developing nations; retirement planning is becoming more and more troublesome for both actuaries and future retirees (Smart Money, 2012). This increased longevity comes with a need to set up a matching retirement plan, particularly when some retirements are expected to last longer than the amount of time the retirees spent working. Rather than trying to predict how long your retirement is slated to last, be prepared for the longer estimate in response to these treatments and technologies.

B: Children are staying with their families longer, even after college.
According to a new study released by Oregon State University, young adults in the 18-30 age bracket are having a harder time than ever becoming financially independent from their parents (Journal of Aging Studies, 2012). This greatly affects those looking to retire while their children are still young adults, and can cause a domino effect that starts to influence generations to come. There’s no guarantee of the job market recovering or this trend changing in the next few years, so when looking at your retirement make sure to factor in all of your current familial expenses.

C: Social Security may not be around in the future.
Social Security has always been a problem politically since it has a foreseeable end; between longer life expectancies and the large baby boomer population, social security is anticipated to “face funding shortfalls in about two decades if nothing changes” (CNBC 2012). While it’s quite possible that the government will come to a viable solution to salvage social security benefits, it’s a good idea to plan for the ‘what ifs’ regardless. Plan for social security as less of a guarantee and more as a pleasant possibility so there are no unpleasant surprises down the road. Don’t have your retirement plan hinge on social security as it may crumble within the next few decades.

Retirement is changing, but that doesn’t mean you can’t still build a healthy, strong retirement plan even with a moderately uncertain future. Your retirement is something that needs to be made to last a long time and you’re allowed to take your time putting the right amount of money into it. As long as you avoid the unnecessary risks in relying on social security, plan for a slightly longer nesting period for your children and plan for your own longevity, you can avoid a few of the major pitfalls that your retirement plans may otherwise succumb to.

http://www.smartmoney.com/retirement/planning/the-cost-of-living-longer–much-longer-1328897162395/

http://oregonstate.edu/ua/ncs/archives/2013/jan/no-more-%E2%80%9Cempty-nest%E2%80%9D-middle-aged-adults-face-family-pressure-both-sides

http://www.cnbc.com/id/100338122/Yes_We_Can_Fix_Social_Security_but_It_Won039t_Be_Pretty

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Tag Archives: Mike Barber

Expected Contingency: 4 guidelines for women looking into planning their retirement

Fast Forward: How Retirement is Changing