Single Women Confront Unique Questions as They Plan Retirement

  • Published on:
    July 21, 2019
  • Reading time by:
    6 minutes
Single Women Confront Unique Questions as They Plan Retirement

In many ways, single women face the same problems as men when they consider how to retire with enough income, with one exception: They worry more.

Women in general are more likely than men to put money into their workplace retirement account and one third of women, according to a survey, said their savings plans are “on track.” But eight in 10 women have concerns about saving enough for retirement, with 54% saying they are “very concerned.”

Their worry is not misplaced. For one thing, it’s more difficult for a single person to save than it is for a couple. And when one member of a two-earner couple loses a job or gets sick it presents difficulties — but it’s not as scary as when you are the sole earner in a household.

(PS: Let us know your thoughts in the comments on Women On Topp!)

In addition, women often take time out of the workplace to raise children or care for parents and their income on average is lower than a man’s in the same job. Yet women live longer, with the Society of Actuaries reporting that the average 65-year-old woman can expect to reach the age of 88.2, nearly two years older than a man. All those factors can make it more difficult for women, particularly single women, to build enough savings to provide the income they want and need through their lifetimes.

Why Worry?

The survey by the Insured Retirement Institute’s report, Women’s perspectives on saving, investing and retirement planning, also found that 54% of women are very concerned about being able to retire when they want to, and 53% of women are very concerned about being able to afford the lifestyle they want throughout retirement.

If that sounds like you, consider this simple and safe approach I’ve been writing about for years:

The income annuity.

When you take some of the money you have saved and invest in an income annuity, you will guarantee income for yourself for the rest of your life. You won’t have to worry about whether that income will run out if the stock market dives or calculate how much you will have to spend from your savings each year. You can count on a retirement paycheck that stays the same year-in and year-out, as opposed to being dependent on withdrawals from your retirement savings account that is tied to market returns and other factors.

A Real Example

Here is an example of how an income annuity could help you prepare. One of our friends is a teacher who makes a good income and has done a good job of saving. She has been divorced for over 15 years, and has a daughter who recently married. The daughter is not expecting a big inheritance from her Mom because she knows her mother needs her savings to support her lifestyle in retirement. Our friend worked out a plan with an advisor who told her she can expect her money to last until she is 90 years old.

But what happens if the economy doesn’t perform as projected? Or she gets sick and incurs large expenses? What will she do if she lives past 90? The answer in each instance is that she will have to spend less than she has planned to. In other words, our friend will have to make decisions – and continue to worry – based on events largely out of her control.

By investing some of her savings in an income annuity, which she would buy from a top-rated insurance company, our friend can guarantee a source of income that will not vary and will last for the rest of her life. The income would be deposited in her bank account every month, just like a retirement paycheck. Having a simple and secure source of income means she can be independent longer and she will likely free up money to pay for unexpected expenses, which will be a comfort to her daughter, too.

This article was originally published on Blog.Silvernest.com

Let us know your thoughts in the comments on Women On Topp! Make sure you’re subscribed to our emails to get the latest posts and updates from Women On Topp

You might also enjoy..

How To Stop Standing In Your Own Way
by Christi Pratte

How To Stop Standing In Your Own Way

Ladies, how many times have you not taken an opportunity simply because you didn’t have enough self-confidence to do so? Honestly, it’s terrifying how often this happens. In fact, I just noticed this happening in my own life which led me here to talk about it with you. I came to this realization the other day that if I am going to hear the word
by Madalyn Ziongas

How Growth Takes Time

As I sat in silence this morning, reflecting on my home, inside and out, I started to understand the perfect timing of everything. I sat with so much gratitude for what I have and what I have accomplished. I moved into this home very quickly with my family and it wasn’t originally what we wanted but we had to make choices fast when moving this time
5 Ways To Be the Most Confident You - Women On Topp / Womenontopp.com Wana Miri
by Christine Falco

5 Ways To Be the Most Confident You

Confidence is the cornerstone of leadership. However, if you do not believe in yourself, how can others believe in you?  Whether you want to heighten your confidence in a relationship, at work, with peers, etc., success is not the be all and end all.  Confidence in yourself and your abilities is what matters most and luckily, confidence is a skill
by Christi Pratte

How To Conquer Anxiety Like A Boss Lady

Many women have shared that they struggle with stress and anxiety within their day-to-day lives. Some days it can fuel just enough to get mass amounts of work done and skyrocket productivity levels. Other days, it can become so crippling that it makes it hard to breathe, eat, or even get out of bed.
by Christi Pratte

How Queens Turn Pain Into Power

What connects all of us as humans? Pain, heartbreak, challenge, and adversity. It’s our stories of struggle and triumph that filter who we connect with, and at the heart of all friendship is a resonation of understanding where another has come from in relation to our own personal stories. It’s powerful to see how very similar we all are at the th

Join the discussion!

Leave a Reply

Your email address will not be published.

DON'T MISS OUT ON ANY OF OUR UPCOMING PODCASTS, EVENTS, LEARNINGS, COACHINGS & MANY MORE?Subscribe & become successful

Please fill in your email address and submit to subscribe