Source: | PR Newswire Association LLC |
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Given the fact that women outlive men on average by three or four years, women need to better plan for various risks, such as inflation, outliving assets and the need to cover long-term care costs. Despite similar perceptions of retirement risks between men and women, actuaries caution that the affects of risks on women can be quite different, and therefore an understanding of post-retirement risks women face is particularly important. For example, the expected average value of the cost of lifetime long-term care services is
“Many women approaching retirement are not focused on the long-term, and the economic crisis of the past few years is only going to add further challenges in retirement security for women in the Baby Boom generation,” said
The SOA report reveals many gaps in understanding of retirement risks. In particular, the report highlights five key risks affecting women in retirement, including:
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Outliving Assets – Among men and women, there is often little focus on the variability of life expectancy and the financial planning horizon is relatively short when compared with life expectancy. While men and women have similar planning horizons, women have significantly longer life expectancies. Coupled with the fact that women traditionally have tended to marry men older than themselves, these facts emphasize the critical need for much more sophisticated financial literacy and retirement planning among women. |
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Loss of Spouse – Because women have longer life expectancies than men and traditionally are younger than their husbands, periods of widowhood of 15 years or more are not uncommon. For many women, the death of a spouse is accompanied by a decline in standard of living. |
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Decline in Functional Status – Women are likely to have a longer period of chronic disability and are more likely to need care in a long-term facility or from a paid caregiver. This is compounded by the fact that women are more likely to be alone in old age and less likely to have a family caregiver. |
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Healthcare and Medical Expenses – Health benefit costs may affect women more than men because they often have lower incomes, but not lower health care costs, and are less likely to have employer provided early retiree health benefits. |
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Inflation and the Economy – Inflation has a greater impact on women due to their longer life expectancy. |
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“This report underscores the need for women to understand the full-blown drama of retirement,” said
This SOA report highlights the findings from the 2009 Risks and Process of Retirement Survey Report, and focuses on the issues in the survey specifically as they relate to retirement concerns unique to women. The survey was conducted through telephone interviews of 804 adults age 45 to 80 in
About Actuaries
Actuaries bring a complex future into focus by applying unique insight to risk and opportunity. Known for their comprehensive approach, actuaries enable smart, more confident decisions.
About the
Contact: |
Kim McKeown, Society of Actuaries |
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847.706.3528, kmckeown@soa.org |
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Megan Filotto, GolinHarris |
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312.729.4259, mfilotto@golinharris.com |
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SOURCE
2010 Year-End Estate Planning: Taking Advantage of Legislative Chaos
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