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Presented by MidAmerica Financial Resources. You can reach them at 618.548.4777 or greg.malan@lpl.com or on the web at www.mid-america.us

 

How Women Can Narrow the Retirement Saving Gap

How Women Can Narrow the Retirement Saving Gap

Steps toward saving more & revitalizing your retirement strategy.

Provided by MidAmerica Financial Resources

 

When it comes to retirement saving, many women lag behind many men. Historically, that has been the case. A recent study by Student Loan Hero offers more evidence of the problem –While 29% of men polled in the study indicated that they have no retirement savings strategy, an alarming 48% of women also answered that they have no retirement savings.1

 

On top of everything else, there is also the income disparity for women in the United States, where women are earning 37% less per year than men. With all these factors, it’s easy to understand both why women find challenges in retirement saving and why these challenges might seem, at first, insurmountable. It could create a frustration that might cause one to avoid learning what needs to be done to begin saving for retirement. Education and talking with a financial professional, however, have the potential to give even the most frustrated retirement saver a boost.1,2

  

How can women plan to address this? Here are a few positive steps you can take.

 

Find out where you stand in terms of savings now. A simple retirement planning calculator (there are many available online) can help you see how much more you need to save, per year and over the course of your career. Retirement planning calculators are for informational purposes only and should not be considered a substitute for a more comprehensive retirement evaluation. A financial professional can help.

 

Save enough to get the match. If your employer will match a percentage of your retirement plan contributions per paycheck, strive to contribute enough to your plan each paycheck, to ensure that the match occurs.

 

Ask about automatic escalation. Some workplace retirement plans have this option, through which you can boost your retirement contributions by 1% a year. This is a nice “autopilot” way to promote larger retirement nest eggs.

 

Ask for a raise. A higher salary means more money to put toward your savings effort.

 

Make tax efficiency one of your goals. Consult a financial professional about this, for there are potential advantages to having your money in taxable, tax-deferred, and tax-exempt accounts. For example, when you contribute to a retirement plan, you make tax-deferred contributions. This lowers your taxable income today; the distributions from those accounts will be taxable in retirement.4

 

Some of these suggestions you will do on your own, but it may also be a good thing to speak to a financial professional you trust and create a savings strategy that will be of particular help for you and your needs.

     

MidAmerica Financial Resources may be reached at 618.548.4777 or greg.malan@lpl.com www.mid-america.us

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Securities and advisory services offered through LPL Financial, a Registered Investment Adviser, Member FINRA/SIPC.
MidAmerica Financial Resources and Malan Financial Group are separate and unrelated companies to LPL.

Citations.

1 – fool.com/investing/2018/12/19/its-harder-for-women-to-save-for-retirement-heres.aspx [12/19/18]

2 – bizjournals.com/bizwomen/news/latest-news/2018/12/more-than-half-of-women-worry-about-financial.html [12/17/18]

Could Assumptions Harm Your Retirement Strategy?

Could Assumptions Harm Your Retirement Strategy?
Three common misconceptions to think about.

Provided by MidAmerica Financial Resources

 

1 – Assuming retirement will last 10-15 years.

When Social Security was created in the 1930s, the average American could anticipate living to age 58 as a man or 62 as a woman. By 2017, life expectancy for the average American had increased to 78.6. That said, this average may bely the fact that many retirees could live well into their nineties or beyond.1,2

 

Assuming you will only need 10- or 15-years’ worth of retirement money could be a big mistake.

 

2 – Assuming too little risk.

Holding onto your retirement money is certainly important, but so is your retirement income and quality of life. While overall inflation has been below 3% for most of the past 10 years, your personal inflation rate may be higher. In that situation, your dollar gradually buys less and less. If your income doesn’t keep up with inflation – essentially, you end up living on yesterday’s money.

 

For this reason, a flexible retirement strategy will likely factor in many situations and scenarios; you cannot plan for every single scenario but considering many possibilities may give you and your financial professional numerous options down the road.

 

3 – Assuming you will be in excellent health. While it’s true that we lead healthier lives than our ancestors and that medical science and awareness of fitness and nutrition have improved and extended many American lives, that improvement doesn’t cover every issue that comes with advanced age. Extended-care issues can sap away retirement funds.3

 

Recent findings by the U.S. Department of Health and Human Services offer some perspective: over a quarter of all people who have turned 65 between 2015-2019 are probably going to need $100,000 of extended care, while 15% of that same group is looking at $250,000.3

 

For these reasons, a retirement strategy should include some thinking about paying for extended care of this sort. Yes, Medicare can help you with the basics, but an insurance strategy that can accommodate longer hospital stays and care should also be a part of your thinking.3

 

Remember that good strategies also change over time, and you will probably want some help along the way. Make time to discuss these common assumptions, and how to avoid them, with your retirement professional.
 

MidAmerica Financial Resources may be reached at 618.548.4777 or greg.malan@lpl.com www.mid-america.us

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Securities and advisory services offered through LPL Financial, a Registered Investment Adviser, Member FINRA/SIPC.
MidAmerica Financial Resources and Malan Financial Group are separate and unrelated companies to LPL.Citations.

1 – ssa.gov/history/lifeexpect.html [2/19/19]
2 – pbs.org/newshour/health/american-life-expectancy-has-dropped-again-heres-why  [11/29/18]
3 – kiplinger.com/article/insurance/T036-C000-S002-how-to-afford-long-term-care.html [1/31/19]

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