If you are a woman planning for retirement alone, your best path forward is to be fully informed and over-prepared. Did you know in the US, social security is the only source of income for half of unmarried African American and Hispanic women over age 65, and for a quarter of unmarried white women in the same age group?
And did you know 40% of women who retire are divorced, entering this new phase alone? Having all aspects of retirement covered, as well as establishing a generous retirement nest egg, will ease some of the stress women feel when it comes to retirement planning.
1 – Plan for a 30 Year Retirement:
With expected longevity, women need to extend their retirement plan by 5 to 10 years, to create a 25 to 30 year retirement plan. That’s roughly a third of a lifetime for most women!
2 – Plan to Spend $5,000 / year Out-Of-Pocket on Health Care:
Boston College did a study that showed most women in retirement will need as much as $4,300 per year just to cover additional medical costs, since Medicare is not all-inclusive. Most retirees quickly realize that Medicare, while a blessing, is not all-inclusive, and they need to pay out-of-pocket medical expenses for copays, prescription drugs, dental, vision, and hearing exams.
3 – Figure out your Social Security Benefits:
For many of us, Social Security provides the biggest piece of our retirement income. Almost universally, working a little longer and delaying your claim will provide a much more secure retirement for life, automatically increasing 8% each year you delay claiming. Plus, by adding more working years to your Social Security earnings record, you’ll increase your benefit.
4 – Work As Long as You Can:
Keeping your health and interest in mind, if you still enjoy your job, consider pushing a few more years while you’re still in your prime to maximize retirement benefits that come out of employment. The longer you work, the more opportunity you will have to contribute to your retirement instead of dipping into your retirement savings.
5 – Set A Budget
Set a pre-retirement budget to help you cut costs and pay off debt before you retire — AND set a retirement budget to make sure your monthly expenses after you stop working don’t exceed your monthly retirement income and spending.
The eRetirements Blog
- New York