Ladies, Are We Retirement Ready?Glen Reyburn, ChFC®, AEP®, Vice President and Senior Financial Advisor, Wealth Management, Univest Bank and Trust Co.
As women, we exercise, eat a healthy diet, watch our weight and dutifully schedule our routine medical check-ups. And our efforts are paying off. We could easily live to be 90 or even 100. But can we afford to live that long?
Less than 45 percent of women between the ages of 21-64 participate in a retirement plan. Approximately 75 percent of Americans approaching retirement in 2010 had less than $30,000 in their retirement accounts.
Ninety percent of women will be responsible for their own finances in their lifetime, so we need to save for our retirement. We face special challenges — we still earn 19 percent less than men and many of us are out of the workforce for an average of 12 years to care for children and/or aging parents.
If you do not have a retirement plan with your employer, make sure you contribute to an IRA. If you are over 50, there is a special catch-up provision and you can contribute an additional $1,000 per year to the $5,500 allowable contribution. If your employer does offer a 401(k), 403(b) or 457 plan, make sure that you optimize your tax-deferred contribution. If you cannot save the maximum ($17,500 per year) try increasing the amount you save each year. Many employers offer a match, so at the very least, save the amount your employer will match. The earlier you start to save, the better, but it is never too late to start saving.
If you do have a retirement plan, review it regularly with your advisor. Make sure you understand your investments and how they help you achieve your goals. If you don't have an advisor, consider hiring one. An advisor can help you create a plan, answer those questions that keep you awake at night and get you on track to meet your objectives.
Let's make our retirement something we can look forward to as well as afford. Questions? Ready to get started? We are here to help. Contact us at 484-947-2751 or email.
Investment products offered by Univest Bank and Trust Co.'s Wealth Management and Trust Division and Univest Investments, Inc., member FINRA and SIPC, a licensed broker dealer and investment advisory subsidiary of Univest Corporation of Pennsylvania, are not insured by the FDIC or any federal government agency, are not a deposit or other obligation of or guaranteed by the depository institution, and are subject to risks, including the possible loss of principal amount invested.