Women Savings and Retirement

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Women, saving for retirement early or NOW determines the quality of your life in later years

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  • Paying for the retirement you truly desire is ultimately your responsibility. You must take charge. You are the architect of your financial future.
  • Saving for retirement should start early.
  • An easy rule of thumb is that you’ll need to replace 70 to 90 percent of your pre-retirement income. If you’re making $50,000 a year (before taxes), you might need $35,000 to $45,000 a year in retirement income to enjoy the same standard of living you had before retirement.
  • There are at least 4 factors that can lead to women living in poverty after age 55.
  • Of the 62 million wage and salaried women (age 21 to 64) working in the United States, just 45 percent participated in a retirement plan.
  • A woman at age 65 can expect to live another 19 years, 3 years longer than a man the same age. Healthcare eats up a large portion of our income during retirement.
  • By and large, women invest less aggressively than men.
  • There are at least 4 factors that can lead to women living in poverty after age 55.
  • 1 in 10 (10.0 percent) women nearing retirement (ages 55-64) were poor in 200941% of those in those lowest income quartile are likely to run short of money after 10 years of retirement, and 57% after 20 years. Meanwhile, just 5% of those in the highest income quartile will run out of money after 10 years, and 13% after 20 years. Retirement Readiness Rating Report by Employee Benefit Research Institute
  • Poverty among the elderly is a women’s issueThe typical woman working full time, all year, earns just 77% of what her male counterpart earns.
  • As a result of their employment patterns, elderly women in 2009 received 23% lower average social security benefit than their male counterparts. One in five, Black, Hispanic and Native American women will live in poverty after age 65.
  • Planning and saving for retirement early and wisely can improve the quality of your life in the years beyond 55.
  • Saving more and perhaps reducing your standard of living now might be the only way to be reasonably certain you'll enjoy any standard of living later on.
  • Remember, by saving early, you have time on your side. Your savings will grow and your earnings will compound over time.
  • As you set aside more money the combination of savings and earnings will help close the gap. For example, adding $200 a month, or $2,400 a year over 10 years to a starting retirement savings balance of $40,000 would more than double your money, assuming a 5 percent rate of return and all earnings reinvested.
  • For some companies, changes to benefits can only be made during Open Enrollment. Most employers with a 401(k) or Deferred Compensation plan match a fixed percentage of the employee’s contribution.
  • In many companies, you may have to work for 5 years to become eligible to receive retirement benefits. Some workplaces have a shorter vesting period (vesting simply means that you have worked long enough to earn the right to benefits from a savings or pension plan).
  • -Review Summary Plan Description for financial consequences.-Keep retirement records from all jobs.
  • Planning and saving for retirement early and wisely can improve the quality of your life in the years beyond 55.
  • Changing Jobs?If vested,-Rollovers, within 60 days, stay on track avoid withholding-Lump Sum + taxes-No touching
  • Start an IRA or Simplified Employment Plan. Professional financial planners and other financial advisers can help as well.
  • Your survivors may be eligible for benefits.
  • As part of a divorce or legal separation, you may be able to obtain rights to a portion of your spouse's retirement benefit (or he may be able to obtain a portion of yours).
  • Understand the rules that govern your plan. You or your surviving spouse may be entitled to receive a survivor benefit when the enrolled employee dies. Check the SPD or consult with the plan administrator regarding survivor annuities or other death benefits.
  • Earn lots of money now and save as much as you can. Because the odds are against you otherwise.
  • Whether you are 18 or 58, you still may be able to afford to buy the kind of retirement you want. Takesteps toward a better, more secure future with a catch-up plan.A record 55% of Americans now plan to work past age 67, and the number who plan to work full-time at that age is also a new high
  • 65% of all Americans will need to work at least one more year because of the economic crisis77% of all American workers have responded to the economy by reducing their spending48% of all Americans are saving and investing more
  • Financial Freedom can look different for each person. Decide now on the lifestyle you want after age 55 and beyond.
  • Resources
  • If you need or want a PowerPoint presentation designed, contact me at tumikia236@comcast.net
  • Women Savings and Retirement

    1. 1. SAVINGS and RETIREMENT<br />
    2. 2. Start Early<br />
    3. 3. Why Saving for Retirement MattersFor Women<br />
    4. 4. Do You Know?<br />
    5. 5. More often womenwork part-time.<br />
    6. 6. 45%<br />Participate in a retirement plan<br />
    7. 7. Women Live Longer<br />+<br />80<br />YEARS<br />
    8. 8. Women Invest Conservatively<br />
    9. 9. Are You at Risk?<br />
    10. 10. Poverty Amongst the Elderly<br />1 in 10 women nearingretirement were poor in 2009<br />41% of lower income retirees will likely run out of money after 10 years of retirement<br />57% lower income of retirees will likelyrun short of money in 20 years<br />
    11. 11. Poverty Rates for Adults<br />By Gender and Age, 2009<br />
    12. 12. Poverty Rates Higher<br />Among Women of Color<br />
    13. 13. As 2.3 million elderly women live in poverty and nearly 1 million in extreme poverty, now is the time to take action to ensure you have a more secure future.<br />
    14. 14. Start Here and Now!<br />
    15. 15. Be One of the 9 in 10<br />Maintain YourStandard of Living<br />Cut your expenses<br />Low income, save an additional 25% per year<br />Middle income, save an additional 15% per year<br />
    16. 16. Earnings CompoundOver Time<br />
    17. 17. Close the Gap<br />
    18. 18. ASK<br />Does your employer offera retirement plan?<br />
    19. 19. ASK<br />Are you eligible to receive retirement benefits?<br />
    20. 20. Review the Summary Plan Description Annually.<br />
    21. 21. Other Factors<br />
    22. 22. Changing Jobs?<br />
    23. 23. Own a Small Business?<br />
    24. 24. Earnings and Survivor Benefits<br />
    25. 25. Separated or Divorced?<br />
    26. 26. Survivor Benefitsand YOU<br />
    27. 27. Financial Freedom<br />Is Up to You!<br />
    28. 28. Is it toolate tostart?<br />NO!<br />
    29. 29. Save as much asyou can—right now!<br />
    30. 30. Start Early, Start Now!<br />Start a planfor your life beyond 55 today!<br />
    31. 31. Resources<br />Visit the following sites for more help:<br />Social Security Administration<br />Request a copy of ”What Every Woman Should Know”<br />800-772-1213<br />www.socialsecurity.gov<br />Pension Benefits Guaranty Corporation<br />Request a copy of “A Predictable, Secure Pension for Life”<br />800-400-7242<br />www.pbgc.gov<br />U.S. Securities and Exchange Commission<br />Request a copy of “Get the Facts on Saving and Investing”<br />800-SEC-0330<br />www.sec.gov<br />Employee Benefits Security Administration<br />U.S. Department of Labor<br />Publication request line:1-866-444-EBSA (3272) or visit: www.dol.gov/ebsa<br />View or request copies of the following publications.<br /><ul><li>Women and Retirement Savings
    32. 32. Top 10 Ways to Prepare for Retirement
    33. 33. Savings Fitness: A Guide to Your Money and Your Financial Future
    34. 34. Taking the Mystery Out of Retirement Planning
    35. 35. What You Should Know about Your Retirement Plan
    36. 36. Filing a Claim for Your Retirement Benefits</li></li></ul><li>Women, Savings and Retirement<br />Presentation Designed by <br />Tumikia Watu-Khuthaza<br />Graphic Designer and Web Developer<br />Copyright © 2010<br />

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