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by: Steve Wilcott
Women earn an average of 76 percent of men’s salaries.
Does that shock you? Yes, even in 2005, women are still way
behind the earning curve in corporate America. But rather
than get into a discussion of the fairness or unfairness of
it all, let’s concentrate on just what women can do
to ensure that they aren’t left out to dry in their
retirement age!
After all, because women typically live seven years longer
than men, combined with the skyrocketing divorce rate, many
women will find themselves alone in their older years. (Statistics
show that most women are alone by age 56!) And the figures
show us that if a woman took out any time from her career
to have children (about seven years) she will pay for it later
with only 50% of what her male counterparts will receive in
retirement benefits.
Sigh.
So, what can a woman do to ensure that she can retire in
style? Start by taking a look at some of our suggestions below.
Save More
Most experts advise us to save about 10 percent of our income
in order to have a sufficient amount to retire one, but if
you are a woman, you should be saving closer to 12 percent.
Because of the reasons listed above, you simply won’t
receive the same amount in retirement pensions. What’s
more, the way that social security figures your monthly payment
is based on the top 35 years of your work history. But guess
what? If you were out for seven or so of those years having
children, they will be counted as “O,” and the
overall amount will be reduced.
Invest Wiser
Since you will need to save more by retirement age, you will
have to more careful with your investments. Know your risk
level, and then don’t exceed it under any circumstances!
Join the Team
Many employers offer investment and savings strategies such
as 401K plans and savings matching programs, and if you are
a woman, you should plan to participate in all of them that
you can.
Use Cash, Not Credit
An alarming number of Americans today are in serious financial
trouble. This was made evident recently with the passing of
the new bankruptcy bill that will make it more difficult to
file. A record number of people filed for bankruptcy in anticipation
of it.
It’s easy to get into debt when people today spend
an average of $1.21 for every dollar they earn, but don’t
be tempted to fall into that trap. Instead, plan to put as
much money away for the future as you can.
Don’t Go It Alone
While it is important for all women to step up to the plate
and get serious about their finances, it’s equally important
for them to get advice from professionals. Talk to tax planners,
investment specialists and budget planners to get all the
advice that you can.
About The Author
Steve Wilcott
This article provided courtesy of http://www.penny-stock-guide.com
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