You may not think much about it now, but you don’t want to be penniless when you’re 65. As you know from Chapter 1, one of the purposes of your personal finance course and of this textbook is to help you plan for retirement. A strong financial plan will help you look at the costs of retirement and develop a plan that allows you to live a life of retirement ease.
In addition to thinking about and planning for your future retirement, in Chapter 18 we discuss the special circumstances and difficulties that women face in retirement planning. In general, women earn less money, are less likely to have pensions, qualify for less income from Social Security because they generally earn less over their lifetime, and they live longer than men. As a result, planning for their financial independence, in particular during their retirement years, is more difficult for women than it is for men.
A recent Money Matters video from ABC News, “Retirement Investing for Women” deals with many of the reasons why retirement finances are more difficult for women. While women tend to adjust to retirement more easily and are happier, women also have a much more difficult time when planning for their financial future.
- Look at your parents and grandparents, do you feel that this video accurately portrays how they relate to retirement? Be prepared to give examples and discuss these examples in class.