Financial: Helping Women Prepare For a Healthy Financial Future

A healthy financial future is certainly to be celebrated! The tips below from Velma Carroll of Ten Star Financial Services will help you get your retirement in gear.

Q: Is it true that older women must prepare better financially for their retirement years than older men?

A: In many cases, yes. Men and women hoping to retire within the next five to ten years may not be financially prepared to retire. Women are especially vulnerable, because they are more likely to have worked less in their lifetime than men. Also, women generally are still not paid as much as men, allowing them to save less for retirement.

Now the question is, how can older women approaching retirement make up for lost time? Retirement savings need to become a priority. It's common for women to make financial sacrifices during their working years, such as staying home to raise children or caring for elderly relatives. Some women also find themselves relying on their husbands for their principal financial support. Statistics Canada reports that men rely more on private pension plans -- up to 67% had pension income, as opposed to 46% for women. Women, by the same token, rely more on OAS and the Canada Pension Plan, which account for 35% and 15% of their income respectively.

Women tend to retire sooner and live longer than men. So much so that women are seven times more likely to be single later in life. Current statistics suggest that the life expectancy of a woman aged 65 is roughly an additional 21 years, on average, compared to a man's 19 years. Sadly, some widows suffer because their husband's income from government and employer pensions drop significantly if the husband dies first. This retirement savings "gender gap" can be overcome by women, however, with creative income splitting and retirement planning strategies.

Article submitted by Velma Carroll, Ten Star Financial Services.
Phone: 905.634.8834

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