Women Likely To Run Out Of Money During Retirement

Women are taking an increasingly hands-on role insignificant financial pain. According to Allstate's 2006
their planning for retirement. A smart move,Retirement Reality Check survey, 40 percent of
considering women are statistically likely to spendwomen said divorce or losing a partner affected their
some of their final years alone. While generallyfinancial preparations for retirement substantially -25
optimistic about the future, women have morepercent of men expressed the same sentiment.
financial fears than men about retirement, but canTwo key considerations when planning for a lasting
take significant retirement-planning steps on theirand enjoyable retirement include:
own.• Making sure your spouse/partner has a will.
National statistics show:Creating a will can provide peace of mind by
• The average American woman lives to beaffording the widow a smoother financial transition
79.5 years old, 5.4 years longer than men (Nationalfor retirement.
Center for Health Statistics, 2001).• Having a serious discussion. In reality, that's
• Almost 90 percent of women will end upwhat's required, not just a simple conversation.
managing their finances alone (U.S. Department ofAccording to Allstate's survey, among Americans that
Labor, 2001).expect a "financially difficult" retirement, more than
• Among women age 85 and older, 33half believe that having a "simple conversation" will
percent meet the standard of "poor" or "near-poor"motivate their partner to take action.
(National Vital Statistics Reports, 2000).Some conversation starters for serious discussion
Also, women are more likely to leave the workforceinclude:
to care for children or parents, leaving them with a• What do we want to do in retirement?
smaller pension. And, because planning for retirement• How much will this lifestyle cost annually?
is principally handled by men, it's easy for women to• Are we willing to work longer, or willing to
underestimate how much they really need to save.have a reduced lifestyle?
For these reasons and more, women need to take• What is our long-term financial goal, and are
control of their retirement preparation.we on track to achieve it?
Death and divorce are as much financial events asAn open, in-depth discussion will help make sure
emotional ones, but women are more likely to sufferretirement planning is on a realistic track.