Everyday Money Management

Women and Money

Plan For Tomorrow

• Women rely on Social Security to provide half of their total income if they are unmarried at age 65 and older. In contrast, Social Security benefits comprise only 37 percent of unmarried men’s retirement income and only 34 percent of elderly couples’ income.

• Women live longer, with an average life expectancy of almost 80 years compared to 74.5 for men.

• Women represent 58 percent of all Social Security beneficiries age 62 and older and approximately 71 percent of all beneficiaries age 85 and older.

• Women are unlikely to have pension income. Only 18 percent of women aged 65 or older receive their own pensions (either as a retired worker or survivor), compared to 31 percent of men.

Realize that it is never too late to start saving for retirement. Start small if you must – just start, urges Ruth Hayden, author of Start Where You Are. Even if you’re at or approaching traditional retirement age (55-65), you may still have 25 to 30 years for your investments to grow.

Women can be excellent investors if they take the time to learn. If you haven’t had the time or opportunity to study the stock market yet, join or start an investment club with other women. Many women-only clubs have excellent track records. It is inexpensive to get started, and you’ll develop skills that will help you make better decisions about your retirement funds. Visit www.betterinvesting.org for information on investment clubs.

Take Care of Your Loved Ones

A recent WomensWallStreet.com survey revealed that only 42% of women have a will. What would happen to your family, your property, or your children if you died? Don’t leave it to chance. If you cannot afford an attorney, then at least visit Nolo.com for inexpensive software that will allow you to prepare your own will. Wills do not have to be prepared by an attorney to be legally binding. Simply writing (or dictating to a competent writer) your wishes in the presence of a witness will suffice, in an urgent situation. Independent paralegal services can also assist in will preparation.

It’s also important to have adequate insurance. Take life insurance, for example. If you work outside your home, your family would need to replace your income if you die. They may also have to hire someone to handle the household duties you take care of. If you don’t work outside the home and have children, your family would still likely incur expenses to hire someone to do what you do (and chances are you’re very underpaid!) Life insurance may be much more inexpensive than you realize.

You will also need disability insurance if your family relies on your income. You are more likely to become disabled than to die before age 65. If your employer provides a disability insurance policy, consider purchasing one. If not, shop for your own disability policy through an insurance agent.

Educate Yourself

For more inspiration and advice, visit your local library or bookstore for some of these helpful books:

From Money Shy to Money Sure by Olivia Mellan

How to Turn Your Money Life Around by Ruth Hayden

It’s Your Money: Achieving Financial Well-Being by Karen McCall

Secrets of Six-Figure Women: Surprising Strategies to Up Your Earnings and Change Your Life and Prince Charming Isn’t Coming both by Barbara Stanney

Why Good Girls Don’t Get Ahead... But Gutsy Girls Do : Nine Secrets Every Working Woman Must Know by Kate White Women

Don’t Ask: Negotiation and The Gender Divide by Linda Babcock and Sara Laschever