The
following is a guest post. This post
does not necessarily reflect the views of Suzanne and David E. McClendon, Sr.
or Manian Debil Productions.
3 Tips For Women Worried About Outliving
Their Retirement Nest Egg
Their Retirement Nest Egg
Few things make retirees more nervous than the possibility their
savings could run dry.
And the situation can be even more troublesome for women, who
are at greater risk of outliving their money because, on average, they live
longer than men. In fact, women over the age of 65 are 80 percent more likely
than men to spend their retirement years impoverished, according to a study by the
National Institute on Retirement Security.
“Many women don’t realize just how long they may live in
retirement and how long their savings need to last,” says Beth Andrews, founder
of Networth Advisors (www.bethandrews.info), a financial-planning
firm that recently launched the Woman’s Worth® program with the goal of
improving the retirement outlook for female clients.
“These days, it’s not unusual for someone to live into their 80s
or 90s, and even past 100,” Andrews says. “Your retirement, in other words,
could last many more years than you ever imagined.”
Women typically face situations men don’t.
“Just think of it this way,” Andrews says. “Most men die
married. Most women die single. Generally, that means men will have someone
who’s caring for them right up to the end. Women will be left to care for
themselves.”
She suggests a few steps women should consider to reduce their
risk of running out of money before they run out of life:
· Delay Social Security. You can claim your Social Security
benefits as early as age 62, but if that’s your plan you might want to
reconsider, Andrews says. Taking Social Security early means you permanently
will receive a lower monthly payment. Unless a personal situation forces your
hand, she says, it may be better to wait until you reach your full retirement,
which is from 66 to 67, depending on when you were born. If you can put off
claiming Social Security until you are 70, those monthly payments would grow
even more.
· Plan for inflation. Too many people – women and men – think in
terms of today’s dollars when they are trying to plot out how much money they
will need in retirement. As decades pass and the cost of living rises, those
dollars are going to buy a lot less -- so it’s essential that you factor
inflation into your retirement planning, Andrews says.
· Take care of your health. This one might not sound like a financial
issue, but medical bills and long-term care expenses can gobble up savings
quicker than nearly any other expense. Regular exercise and healthy eating can
go a long way toward keeping both your body and your savings account fit.
“There are other things you’ll want to consider as well,”
Andrews says. “For example, you may want to put off retirement and keep working
longer than you originally planned. The important thing, though, is that you
start thinking about what your retirement plan is and what you need to do to
help make sure it doesn’t fall apart.”
About Beth Andrews
Beth Andrews, a CPA and Certified Financial Planner®, is founder
of Networth Advisors
As an experienced financial advisor, she specializes in the
areas of retirement planning, retirement distribution planning, tax strategies,
investments and insurance.
Beth offers investment
advisory services through AE Wealth Management (AEWM), LLC. Networth
Advisors and AEWM are not affiliated companies.
She and her husband Todd, a retired millwright for US Steel,
have been married for 23 years and live in Eighty Four, PA near their family.
Andrews received her accounting degree from Indiana University and started as a
financial advisor in 1997.
She founded Networth
Advisors to help clients accumulate, protect and enjoy their wealth.
Please be advised that all the information in this course is provided to educate, enlighten, and broaden your views in life. The information provided is not a substitute for medical, legal, dietary, financial/accounting, or religious professionals.
Always consult a professional before you act on any of the information you find in this course.
Please be sure to consult your attorney, accountant, and/or other professionals with any specific questions. There is no one right answer to any business question that will cover all circumstances.
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