Retire Safe & Tax Free - Financial Well-being Needs Fixing for Most Women

Women face enormous challenges in their pursuit of a financially secure retirement.

women are being balanced in a scale

The math verifies that Advisors must do a better job for our potential female clients. This is a practice we take very seriously at Archer Weiss. We believe that women must be educated in the retirement planning areas in order to make the correct decisions in moving forward with their overall retirement planning.

Let's be honest, it is very clear that women are still trying to overcome discrimination that men never encounter. Studies have shown that since women are only paid about 77% of what a man is paid for equal work. This impacts women's Social Security benefits and they receive less benefits because they have earned less money and therefore paid less money into the program.

But there are other obstacles for women that do not involve discrimination that are just as dangerous to their financial well-being.

Women play an irreplaceable role in society as care-givers. When they have children, many women choose to leave the workforce temporarily or reduce their schedule to work part-time. The work they do caring for the children is enormously valuable for their families and for society. But because they are not paid or even given credit for these contributions, they receive fewer credits towards Social Security qualification and have less earnings applied to their Social Security ledger.

Additionally, women are more likely than men to have to leave the workforce to care for disabled or elderly parents. Although they are not paid, this is a vital contribution to the financial well-being of our country. Consider that without this caregiving benefit, those people would have to be cared for by government agencies who do not have the money or inclination to provide benefits and care for a population that will increase to between 80 and 100 million elderly people. Nonetheless, these women do not receive any credit towards earnings applied to Social Security's calculation of benefits.

Making the matter worse, the problem is the simple fact that women live longer.

If a woman reaches the age of 65, her life expectancy is almost three years longer or more than a man's. Even though they live longer lives, 80% of women take their Social Security at the age of 62 - when it provides the least benefit. That election also reduces their cost of living because they started with a smaller amount. Compounded over a lifetime, this turns out to be quite a lot of money they never receive.

A recent study clearly showed this shortfall. Forty-five year old men were found to be $212,000 short of what is required to achieve a secure retirement. Unfortunately, this is a pretty large number, but women of the same age were found to be $268,000 short! As one would expect, this enormous shortfall of over a quarter of million dollars, makes women financially vulnerable in retirement. In other words, if a man saves $100 for retirement, a woman needs to set aside $126!!

It seems that women should be shouting from the rooftops and asking to receive better information and quality advice which is exactly what we do at Archer Weiss. As an Advisor, we provide a service second to none in helping them plan for what may be a retirement period of twenty-five to thirty years or more.

As a conscientious Advisor, we provide a service to our female clients when we help them plan for their or they and their spouse's retirement. We believe that it is imperative that we give them the guidance they require to understand and navigate their retirement and their retirement benefits.

In my experience, women may be more receptive to savings choices rather than investing choices. When given a choice, women want a guarantee that they will never be poor and run out of money. We can provide that guarantee!

Marc H. Weiss, Archer Weiss Insurance & Financial Services, Inc. Please Call Toll free: 1-800-831-2901 or (818) 610-8560