Maurie Backman, The Motley Fool published this article recently and discussed why women need to plan carefully for social security.
often serves as a major income source for both male and female
retirees. But those in the latter camp need to be even more strategic
about those benefits. Here are three reasons why.
1. Women tend to live longer than men
average 65-year-old man today can expect to live until age 84.3, says
the Social Security Administration, while the average 65-year-old woman
can expect to live until 86.7. That may not seem like such a large gap,
but consider this: It’s estimated that 90% of women will eventually be
responsible for their own finances down the line, in the absence of
their long-term partners. As such, it’s especially critical that women
maximize their Social Security benefits — because they’re likely to
collect them for longer.
2. Women typically earn less than men
You’ll often hear that women’s earnings pale in comparison to men’s, and while you’ll see different statistics relating to the wage gap,
as a general rule, females only earn about $0.78 to $0.82 for every
dollar their similarly qualified male counterparts bring home. As such,
they stand to collect less from Social Security, since benefits are
calculated based on workers’ 35 highest years of earnings. Compounding
the problem is that women are also more likely to take extended breaks
from the workforce, often to raise children, and therefore frequently
don’t have a full 35 years of work on record. When that happens, a $0
gets factored in for each missing year of work, thereby bringing those
3. Women often have less retirement savings than men
women earn less than men and are also more likely to take time out of
the workforce, they often struggle to set aside funds for the future. In
fact, a study released last year found that women are saving only about half
as much as their male counterparts. The result, therefore, is that
women are more likely to rely heavily on Social Security in retirement
to make up for their lower IRA or 401(k) balances.
Making the most of Social Security
Social Security plays a critical role in women’s retirement. The good
news in this regard is that women can take steps to get more money out
of the program.
For one thing, filers who delay benefits past full retirement age
get an 8% boost for each year they hold off on claiming them. That
means a woman with a full retirement age of 67 could wait until 70 and
grow her benefits by 24% — for life. (Delayed retirement credits that produce the aforementioned boost cease to accrue at 70, which is why delaying past that point isn’t necessary.)
longer achieves an additional goal that helps from a Social Security
standpoint — filling in gaps for years spent away from the workforce. A
woman with just 32 years of work on record, for example, could retire
at 70 instead of 67 and add three more years to her work history for a
total of 35.
Fighting for more money on the job can also work
wonders for Social Security purposes, not to mention make it easier for
women to save for retirement on their own. An estimated 56% of employees
have never come out and asked for a raise, according to job site CareerBuilder, but of those who have, 66% got pay boosts. Researching salary data
can help women approach those conversations more confidently,
especially when they can prove that they’re statistically underpaid.
While Social Security isn’t designed to sustain retirees on its own,
many women will wind up leaning heavily on those benefits down the
line. By taking steps to get as much money as possible out of the
program, women can reduce their likelihood of struggling financially
during their golden years.
You’ve heard it before: When the markets become erratic, or seem poised for a prolonged downturn, the best thing you can do is nothing at all.
The recent volatility in the stock market can make older investors feel vulnerable. Here are some strategies to make sure your money lasts as long as you do.
But if you are on the cusp of retirement — or, perhaps worse, newly
retired — a turbulent stock market can make you feel particularly
there is some validity to those feelings, it’s more productive to
redirect any panic into prudence, which will help ensure your money
For older people invested in stocks, the performance of the market in the early years of your retirement can have a lasting effect on your portfolio, which will remain a dynamic entity for perhaps three more decades. If you have to start selling investments when they are worth less, you’ll have to sell more shares to get the cash you need — and the repercussions build on themselves.
My daughter Claire recently sent me an e-mail recounting a conversation she overheard while having lunch at a restaurant.
girl asked her mother how people pay for retirement. “Her mom said,
‘Well, there’s this thing called a pension, but that probably won’t be
around when you’re older. And there’s Social Security, but that probably
won’t be around, either,’” Claire told me.
“And that was it,”
Claire said. “It made me sad because the mom clearly had no idea how one
actually pays for retirement, and it was such a lackluster answer to a
really good question. It seemed like a good time for her to tell her
daughter that you need to save for retirement your entire life.”
is right on two counts: Lackluster answers won’t help girls become
financially savvy, nor will they help women achieve a secure retirement.
face all the issues that men face, plus they have additional
complicating factors,” says Larry Swedroe, co-author of “Your Complete
Guide to a Successful & Secure Retirement.”
expectancy for women is longer than it is for men, but women tend to
amass less in retirement savings because they often earn less over the
course of their careers, are more likely to take time off for family
responsibilities and tend to invest more conservatively.
Recently Brian O’Connell published in The Street about what a Reverse Mortgage Does!
A reverse mortgage is an increasingly attractive proposition for older Americans who may be low on cash, need to supplement retirement income, and want to use their home equity to remain in the house they own.
mortgages are loans that enable U.S. homeowners over the age of 62 to
cash in on the equity built up in their home, via a reverse mortgage
a tempting opportunity in an age where millions of U.S. seniors are
struggling to save enough money for retirement. Data from Northwest Mutual shows
that 67% of Americans believe they will outlive their retirement
savings and 21% of American have saved zero dollars for retirement.
Even so, there are some risks involved in cutting a deal on a reverse mortgage (otherwise known as a home equity conversion mortgage.) Such mortgages are supervised by the U.S. Federal Housing Administration, an arm of the Department of Housing and Urban Development, so there is some level of regulatory scrutiny.
Long Beach Reverse Mortgage is the best-in-class home equity conversion mortgage lender. We help you get all the reverse mortgage pros and cons to get you the most out of your loan.
Transform Equity To Cash
You’ve worked hard your entire life, saved for retirement, paid your mortgage month after month and built home equity. Long Beach Reverse Mortgage lets you use your home investment as tax-free* money to improve your retirement’s quality of life.
Your Retirement—Your Way
Use your reverse mortgage loan proceeds to improve your retirement and enjoy it the way you want to. Pay off outstanding debt, manage expenses without worrying, supplement your retirement income and save funds for later. *Homeowner is responsible for property taxes, homeowners insurance, and maintenance of your property.
A reverse mortgage is a loan that converts your home’s equity into cash for borrowers who are 62 years or older. The first thing we always ask a customer is it possible to sell the house and downsize? Secondly, can your family come to give you monthly money to supplement your income? At Long Beach Reverse Mortgage we want to make sure that a reverse mortgage is a right solution for you.