Oct
21
Retirement Security for Women In Generating Income Rather than Wealth
October 21, 2009 | Leave a Comment
Posted by: Kathleen Daniel
In part because we live longer, and also because of the ways in which women’s retirement benefits are tied to how much we earn during our working lives, women face a greater longevity risk – danger of outliving our assets – in ways that men don’t. How women can get more guaranteed income in retirement is an issue the Women’s Institute for a Secure Retirement (WISER) monitors and has long advocated for. And in light of the market crash, it’s clear that the traditional focus on accumulating wealth through contributions to 401(k) plans and IRAs clearly won’t be enough, or secure enough. WISER suggests that women should be more concerned with finding ways to generate predictable income streams over their lifetime to add to their social security benefits. Their research also suggests moving towards using income annuities, long-term care insurance policies and reverse mortgages.
If you are single, or may become single – between the ages 75–84, only 34 percent of women are married with their spouse present – here are some startling statistics. Nearly 40 percent of older women living alone depend on Social Security for almost all of their income and more than half would be living in poverty were it not for their Social Security benefits. The poverty rate (threshold: $9,669 ) for all women age 65 and older is 12%, and 61% of women’s annual income over 65 is $19,338 (2007).
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