Your Golden Years and Social Security

With a longer retirement to plan for – since U.S. Census 2008 reports suggest they live on average, five to seven years longer than men – and since U.S. Bureau of Labor* reports show they make 80% of a man’s salary for the same job – women need to make their retirement dollars go further than men. One of the most important rules in savings and investment is to leave your money alone. Taking money out and cashing in bonds might seem like a good idea in the short term, you will lose a lot in compound interest, tax savings, not to mention fees.

Current demographics mean that there is a massive pool of soon to be retirees approaching their golden years, putting a strain on government support for seniors. In the past, many people relied on Social Security benefits to fund their retirements, but now those dollars won’t go far enough.

While Social Security won’t pay the whole way, women can factor in some outside support when calculating their retirement plans. According to their own reports, Social Security currently pays, on average, 40% of pre-retirement earnings, which is more than half of the 60-80% of pre-retirement earnings experts suggest. With Social Security in mind, the key is to maximize your earnings while still in the work force, so that your pre-retirement earnings are as high as possible. Take every available promotion and raise; even if you are thinking about winding your professional life down, it will greatly impact your future Social Security benefits.

Most women should plan for between 20 and 30 years of retirement and, with an uncertain future for Social Security, it is important to build your own retirement savings plan. When it comes time to retire, every little bit will help, but you should plan to contribute at least 30% of your annual retirement income from pre-retirement savings and investments.

Useful Resources & Links:

• Social Security Information for Women 
• Women and Social Security: What You Should Know 
• 6 Ways to Maximize Your Social Security Payout 

* U.S. Bureau of Labor, Highlights of Women’s Earnings in 2008, 2009

AXA Equitable Life Insurance Company (AXA Equitable) (NY, NY)

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Please be advised that this document is not intended as legal or tax advice.  Accordingly, any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.  The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from and independent tax advisor.