According to the retirement article, This group of women bears the highest retirement risk, “Married women in two-income households are at the greatest risk of not being able to maintain their standard of living after retirement.”
That’s the finding of new research conducted by the Center for Retirement Research at Boston College and published by Prudential Financial in a report titled Closing the Retirement Income Gender Gap. (Source)
This is why I’ve been saying all along that even married women need to become more involved in the family financial planning decisions. It appears that complacency is only one of the reasons married women are at risk.
Cindy Hounsell, president of the Women’s Institute for a Secure Retirement (WISER) is a bit blunt about it. She says about married women: “They’re having a nicer life while it is going, rather than saving for retirement. There’s a bit of denial when it comes to retirement planning.”
The article lists the following reasons:
- Two-income households make more but save less.
- They receive lower Social Security benefits but pay more Social Security taxes.
- They save too little for retirement because only one of the working spouses saves in a workplace retirement plan.
How should married women from a two-income household maximize their retirement savings?
- Both spouses should be contributing to a workplace retirement plan.
- Contribute enough to get the match, if applicable.
- Maximize catch-up contributions on retirement savings plans.
- Purchase a life insurance policy.
Check out the article: This group of women bears the highest retirement risk
Hello, I’m Patti Fagan. Women’s financial empowerment is my passion! I am an award-winning money coach and Ramsey Solutions Master Financial Coach, dedicated to helping women transform their money relationship so they can experience financial peace of mind, and enjoy life knowing they’ll always have the money they need to take care of themselves and their loved ones.