Be well-advised

Welcome to "Today's New Retirement"

Where your last day of work no longer means the beginning of your last phase of life.


Women and Retirement

The biggest challenge for women in “Today’s New Retirement” is current life expectancies.

Life expectancy tables tell us that a 60 year old non-smoking woman should have an average life expectancy of age 85. That means that at age 85 – half are still alive and half have passed away.

If the 60 year old woman has good health and financial security, her life expectancy increases to age 93. If that same woman also comes from parents with long life spans, living to her late 90’s is very possible.

This can be good news – or it can be bad news.

Obviously this illustrates the critical importance of making sure that you do not run out of income in your old age. A financial and income plan is critical to cover such a period and protect you for the cost of possible Long Term Care late in life.

If you are not already single, you have to realize the strong probability that some of that period could be experienced as a widow. Women, on average, live 4-6 years longer than men. If you are 3 years younger than your husband, statistics say you will be a widow for 6-7 years. This would vary depending on your age difference and the health conditions of you both.

My concern is that after having been in the financial industry over 35 years, I find that many women still leave most financial matters to men. Recent information from Statistics Canada suggests that overall 51% of senior men suffered a loss of income after five years of widowhood compared to 72% of women. Nearly 75% of widows now living in poverty weren’t poor when their husbands were alive.

It is imperative that you are involved in the family finances. The odds are that you will have to live your last years on what is left.

If you are already single how do you create a balanced lifestyle and financial plan that can cover so many years? An investment error could seriously affect your later life. What about inflation over such a period? What did things cost thirty years ago?

With this life expectancy, a life plan is also a must. 30 years is 10,950 days! What will you do to have a challenging, fulfilling, healthy retirement? Leisure is great for a break, but very unrewarding for a life.

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