Most of us know we need to save more money to pay for things like cars, vacations, our children’s educations, paying off debt, paying off our houses early, or even retirement.
Do you know that 56% of Americans have less than $10,000 saved for retirement?
And by the age of 65, when most people are ready to retire, the average retirement savings is $100,000. That’s a far cry from the $1 million that finance experts recommend.
Women, in particular are at risk of not having enough money in retirement so it’s important for couples and individuals to plan early to make sure that there’s enough money. One factor is that there is an earnings gap between men and women. Women earn, on average 80.5% of what men make for doing the same job. What that means is that women aren’t able to contribute as much to retirement plans or save as much as men.
If you’re facing a divorce and you’ve been a stay at home mom (or dad) or your career has been put on the back burner while you’re raising your family or taking care of your parents, you may have even less saved. Single parent families are the most likely to live in poverty, nearly 5 times more than families with two incomes. After divorce, household incomes drop on average 41% for women and 23% for men.
According to MarketWatch, among couples who live to the age of 65, the woman is likely to outlive her husband by an average of 11 ½ years. If there were 2 incomes coming into the home, one of the incomes goes away, leaving many women in a position of poverty. In addition, women over the age of 63 tend to spend 30% more in retirement healthcare expenses due to chronic illness and she’s less likely to have outlived her spouse so she doesn’t have the unpaid services of her spouse as her caretaker.
What happens if something happens before you reach the age of retirement? Do you have enough cash on hand to pay for your expenses?
Learn some strategies to protect yourself and your family.