| PLANNING YOUR FUTURE |
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My Future
By Melanie Lasoff Levs
Sponsored by AXA
You have to plan as if you are totally responsible for your future wellbeing -- because you probably will be. Studies show approximately 90 percent++ of women will be solely responsible for their finances at some time in their lives. In this section, learn:
- The unique lifestyle issues that directly impact women's financial needs
- The good news about women in investing
- Statistics from AXA Financial's Nest Egg Study
- How to develop a retirement income plan
- How annuities fit into your plan
- How much you'll really need to retire
- Seven strategies to help build a successful tomorrow
Career-oriented executive, stay-at-home mom, married, single, divorced, business owner, entrepreneur, student, young, middle-aged, in retirement… which one are you? Most likely, you're a mix of two, three, maybe four. We're all different and we all have different needs, especially when it comes to saving for retirement, estate planning and investing. If you are like most people, you probably have misconceptions about planning and the best strategies to achieve your financial goals. With access to how specific strategies can help you protect and enhance your assets, you can better reach your financial aspirations.
Unique Lifestyle Issues
While both men and women share many of the same financial concerns, women have unique lifestyle issues that directly impact their financial needs:
Women live longer, so their money has to last longer. Even though women, on average, live five years longer than men and make up two-thirds of the population over age 80, the average woman actually accumulates less money for retirement than the average man. Why?
Women have fewer years in the workforce. Taking time out to have children means fewer years to build up retirement funds in a 401(k) or other plan. It may also mean lower Social Security payments when you retire.
Women are much less likely than men to receive pension income in retirement (30 percent of women compared with 47 percent of men 65 and older)*
For those who receive benefits, women's annual benefits are only half the amount received by men.
Women's family obligations usually come first. Studies show that men consistently put more away for retirement than do women. Why?
Women are more likely than men to leave the workforce or reduce their hours for family reasons.
Women shoulder more of the caregiving duties and expenses for children and older relatives, or perform "double duty" by caring for both children and older relatives at the same time. In fact, more than 70 percent of "double duty" caregivers are women.**
It's a myth that you can save as much for retirement as your male colleagues. The greatest inhibitor to equality in saving is that women earn less.
Even if you contribute the same percentage of your salary to your retirement fund as a male colleague, the dollar amount will be lower.
The Good News
A recent study by the UK-based financial website Digital Look found that women are consistently better than men at investing. Based on analysis of 100,000 portfolios, the average woman's share portfolio grew by 17 percent while the average man's rose by just 11 percent. The study found that women tended to back a balanced portfolio while men tended to favor stock market "fads."
Women are potentially better investors because:
- Women ask questions. They tend to be more systematic about investigating investment options and aren't afraid to admit when they don't understand something.
- Women tend to stay the course. Investment success means riding the ups and downs of the market, and women are more likely than men to do so.
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