Summerlin Benefits Consulting Q&AAnswer
Oct 15, 2024 - 09:34 AM
Women should prioritize having a solid retirement plan due to several key factors, one of which being that an average female retiring at age 67 can expect to live another 20 years. According to the U.S. Department of Labor, this is two years longer than the average man. Women often face unique financial challenges such as longer life expectancies, which means they generally need more savings to sustain a longer retirement period. Additionally, women may experience career breaks, often due to caregiving responsibilities, which can limit their earning potential and retirement savings over time. These interruptions can impact their ability to accumulate wealth through traditional retirement plans like 401(k)s and IRAs.
Moreover, lower lifetime earnings, whether due to wage gaps or time out of the workforce, can result in reduced Social Security benefits. Because of these realities, it becomes crucial for women to have a comprehensive strategy that includes saving consistently, considering products like annuities for guaranteed income, and adjusting their financial plans to reflect their longer lifespans
Establishing a sound retirement plan can help ensure financial security and peace of mind throughout retirement.
