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Nine
Ways to Boost Your Retirement Security
If you're a woman, odds are high that your
pension will be lower than that for the men
you carpool with to work. So, whether you're
a golly-gee kid just starting up the career
ladder or a well-established veteran
complete with brass nameplate on the door,
you need to do more than just think about
boosting your retirement security.
Fortunately, there is a lot you can do.
Women as a group get the short end of the
stick when it comes to pension benefits.
According to Money Magazine, in 1997 the
average annual pension benefit was $9,506
for women, versus $18,106 for men. Good for
the guys, but what about you?
So, here are nine things you can do to boost
your retirement security: |
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Lillian J. Cosio is a financial
services professional at New York
Life Insurance Company. |
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1. Make a conscious
effort to take charge of your own retirement
planning. Don't leave it to chance... or your
husband. Start saving for retirement. No excuses.
2. Get knowledgeable
about finances. You don't need to become a
Wall Street wizard. You can learn enough to make
intelligent choices – or at least understand the
advice of experts – by reading a few books or
attending one of those weekend seminars. Investing a
few hours learning the basics can pay big dividends
in knowledge today, and financial security tomorrow.
3. Make maximum
contributions to qualified retirement plans.
You can do this through work and IRAs, or on your
own. No ifs, no ands, no buts. Just do it.
4. Join an investment
club, or start one of your own. Not only is
this one of the best ways to learn about investing,
but it can lead to nice profits. Best of all,
investment clubs are becoming the domain of women.
Among the more than 17,000 investment clubs that
belong to the National Association of Investors
Corporations, nearly 42 percent are all women, 46
percent are mixed, and just 13 percent are all men,
says Colette Dowling in her book “Maxing Out: Why
Women Sabotage Their Own Financial Security.” Plus,
women’s investment clubs are registering better
returns than the men-only clubs – 21 percent average
annual return for women, versus 15 percent for men,
according to American Demographics. You can learn
more about investing at www.nylim.com/mainstayfunds.
 5.
If you're single, don't wait for Mr. Right to come
along and solve all your problems. Too many
women torpedo their own financial security by
deferring to their husbands – even the one they
haven't met yet. Besides, even if he is Mr. Right,
you will probably outlive him. Your best bet: Take
charge of your own future.
6. If you're married,
take an active part in your household's finances.
Become economic partners with your husband.
Make money a hobby, something you can do together.
Bonus: Couples who make money decisions jointly tend
to have a better personal relationship, as well.
Says Money Matters: "They're less likely to file for
bankruptcy... or divorce."
7. If you're married,
discuss the critical differences between joint and
single life pension and annuity benefits.
Under a single life option, when he dies, his
benefits die with him. Also, since you probably will
outlive him, make sure that your (his and yours)
estate plan provides for you after he is gone.
8. Look before you leap
when changing jobs. Don't go solely for a
bigger paycheck; make sure you won't lose retirement
benefits. Also, you may want to think twice before
retiring early – before your benefits are maxed out.
9. Become financially
aggressive. Historically, women have tended
to be conservative with money. While this is
changing, many women still tend to focus too much on
protecting principal than on achieving solid returns. |
