The following article was posted on the AAUW Dialog:
Our mom devoted much of her life to our well-being, and so when she retires, what do we know about her financial security? Initiating a conversation on this topic may be difficult and can appear intrusive. But just as working women recognize existence of the pay gap, women in retirement are facing a pension gap.
A research report of the AAUW Educational Foundation, "Mom's Retirement Security", found that nearly half of us don't know mom's financial situation. Other statistics cited in this report indicate that for most women age 65 and older, Social Security provides slightly over one-half their income.
In 2008, the maximum Social Security benefit (retirement at age 65 and 10 months) is $26,220 and is based on earnings at the maximum taxable amount since age 21. Women typically earn less than that taxable amount because of the gender pay gap and also because they are more likely to work for non-profits, work part time or take time out of the work force to care for children or other relatives. Other factors including the replacement of defined retirement benefit plans with 401(k) saving plans and the potential impact of a divorce, contribute to an increasing pension gap risk.
Developing a full understanding of retirement income and expenses does appear to be a daunting process. Obtaining the advice of a truly independent financial advisor can provide a reliable analysis with viable alternatives. Failing that, the Social Security Administration provides two well-written documents: 1.) "Women and Retirement Savings" and 2.) "Taking the Mystery Out of Retirement".
Click on an underlined link above to download a document
Our mom devoted much of her life to our well-being, and so when she retires, what do we know about her financial security? Initiating a conversation on this topic may be difficult and can appear intrusive. But just as working women recognize existence of the pay gap, women in retirement are facing a pension gap.
A research report of the AAUW Educational Foundation, "Mom's Retirement Security", found that nearly half of us don't know mom's financial situation. Other statistics cited in this report indicate that for most women age 65 and older, Social Security provides slightly over one-half their income.
In 2008, the maximum Social Security benefit (retirement at age 65 and 10 months) is $26,220 and is based on earnings at the maximum taxable amount since age 21. Women typically earn less than that taxable amount because of the gender pay gap and also because they are more likely to work for non-profits, work part time or take time out of the work force to care for children or other relatives. Other factors including the replacement of defined retirement benefit plans with 401(k) saving plans and the potential impact of a divorce, contribute to an increasing pension gap risk.
Developing a full understanding of retirement income and expenses does appear to be a daunting process. Obtaining the advice of a truly independent financial advisor can provide a reliable analysis with viable alternatives. Failing that, the Social Security Administration provides two well-written documents: 1.) "Women and Retirement Savings" and 2.) "Taking the Mystery Out of Retirement".
Click on an underlined link above to download a document
This is a "Program in a Box" click *here to download the program from the AAUW website.
Page Topics: (click on a title)
Calculators Mom's Financial Security 2009 Financial Stimulus Bill
Financially Fit for Life MN Elder Economic Security
Calculators Mom's Financial Security 2009 Financial Stimulus Bill
Financially Fit for Life MN Elder Economic Security
Currency Converter:
Click here to download a summary of the 2009 Financial Stimulus bill from Smith Barney.
Track spending at www.recovery.gov.
The Minnesota Elder Economic Security Initiative (MinnEESI) is designed to examine what elder adults and elder couples need in order to age in place with dignity. The centerpiece of this program is the Elder Economic Security Standardâ„¢ Index (the Elder Index) and a complementary policy brief entitled Elders Living on the Edge: When Basic Needs Exceed Income in Minnesota.
Drawing from the data of the Elder Index, the narrative and tables of the policy brief show not only the cost of living in the home, but provide policy recommendations that the aging community can undertake to improve the lives of seniors.
Click here to download the research report.
Click here to download the policy brief.
Sponsors:
MinnEESI Key Partners:
Minnesota Community Action Partnership: www.mncaa.org
Minnesota Department of Human Services: Office of Economic Opportunity:
www.dhs.state.mn.us/cfs/oeo
Minnesota Department of Human Services: Transform 2010: www.dhs.state.mn.us
Office on the Economic Status of Women: www.oesw.leg.mn/
University of Minnesota Center on Aging: www.hpm.umn.edu/coa/
The Gerontology Institute-University of Massachusetts Boston: www.geront.umb.edu
Wider Opportunities for Women (WOW): www.wowonline.org
Drawing from the data of the Elder Index, the narrative and tables of the policy brief show not only the cost of living in the home, but provide policy recommendations that the aging community can undertake to improve the lives of seniors.
Click here to download the research report.
Click here to download the policy brief.
Sponsors:
MinnEESI Key Partners:
Minnesota Community Action Partnership: www.mncaa.org
Minnesota Department of Human Services: Office of Economic Opportunity:
www.dhs.state.mn.us/cfs/oeo
Minnesota Department of Human Services: Transform 2010: www.dhs.state.mn.us
Office on the Economic Status of Women: www.oesw.leg.mn/
University of Minnesota Center on Aging: www.hpm.umn.edu/coa/
The Gerontology Institute-University of Massachusetts Boston: www.geront.umb.edu
Wider Opportunities for Women (WOW): www.wowonline.org
