When our parents retired, living to 75 amounted to a nice long life, and Social Security was often supplemented by a pension. The Social Security Administration estimates that today’s average 65-year-old woman will live to age 86½. Given these projections, it appears that a retirement of 20 years or longer might be in your future.
Are you prepared for a 20-year retirement? How about a 30-year or even 40-year retirement? Don’t laugh; it could happen. The SSA projects that about 33% of today’s 65-year-olds will live past 90, with approximately 14% living to be older than 95.
Start with good questions. How can you draw retirement income from what you’ve saved? How might you create other income streams to complement Social Security? And what are some ways you can protect your retirement savings and other financial assets?
Enlist a financial professional. The right person can give you some good ideas, especially one who understands the challenges women face in saving for retirement. These may include income inequality or time out of the workforce due to childcare or eldercare. It could also mean helping you maintain financial equilibrium in the wake of divorce or death of a spouse.
Invest strategically. If you are in your fifties, you have less time to make back any big investment losses than you once did. So, protecting what you have may be a priority. At the same time, the possibility of a retirement lasting up to 30 or 40 years will likely require a growing retirement fund.
Consider extended care coverage. Women have longer average life expectancies than men and can require significant periods of eldercare. Medicare is no substitute for extended care insurance; it only covers a few weeks of nursing home care, and that may only apply under special circumstances. Extended care coverage can provide a huge financial relief if the need arises.
Claim Social Security benefits carefully. If your career and health permit, delaying Social Security can be a wise move. If you wait until full retirement age to claim your benefits, you could receive larger Social Security payments as a result. For every year you wait to claim Social Security, your monthly payments get about 8% larger.
Retire with a strategy. As you face retirement, a financial professional who understands your unique goals can help you design a wealth management approach that might serve you well for years to come.
“Decide what you want to do. Then decide to do it. Then do it.”
– William Zinsser
Recipe of the Week
Lemon Pound Cake
- 1½ cups all-purpose flour
- ½ tsp. baking powder
- ½ tsp. salt
- ¾ cup unsalted butter, room temperature
- 1 cup sugar
- 3 large eggs, room temperature
- ¼ cup sour cream, room temperature
- 3 Tbsp. fresh lemon juice
- Zest of 1 lemon
- 1 tsp. vanilla extract
- Preheat oven to 350° F with rack in the bottom-third.
- Grease a loaf pan.
- Mix flour, baking powder, and salt, then set aside.
- Using mixer, beat butter until smooth.
- Add sugar and beat with butter for 2 minutes.
- Add eggs, one at a time, with mixer at low setting.
- Beat in sour cream, lemon juice, lemon zest, and vanilla extract.
- Once added, beat at medium-high until combined.
- Move to low speed and add flour mixture, beat until fully mixed.
- Turn up to high speed to remove any lumps, but don’t overmix.
- Pour batter into loaf pan and bake for 45 to 60 minutes.
- Test cake with toothpick to see when cake is done.
- Optional: poppyseeds. Add them on top of the batter once it’s in the loaf pan before placing it in the oven.
Recipe adapted from sallysbakingaddiction.com
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