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Why Women Need
Retirement Planning... Page 2
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Work as long as you can at the highest salary you can
The longer you work, the more you can sock away for retirement. And the older you are when
you retire, the fewer years of retirement you will have to fund.
Higher Social Security benefits are an extra bonus for those years of hard work. If you
pay into Social Security for at least ten years (or if you qualify for Social Security
under your husband's work record), you won't have to pay monthly premiums for Medicare
hospital insurance when you retire.
Understand the effect on Social Security benefits of divorce and remarriage
If you divorce, you are entitled to Social Security payments equal to 50% of your
ex-husband's benefits, if you were married for at least ten years. You'll lose that right
if you remarry, though you'll be entitled to collect payments based on your new husband's
benefits. A widow is entitled to her late husband's benefits as long as she doesn't
remarry before age 60.
Put money away for retirement on a regular basis
Just $10 to $20 a week can add up, especially if you start young. For example, $20 a week
invested in growth mutual funds from age 40 to age 65 will build to a nest egg of $92,000.
Start at age 25, and it will grow to nearly $370,000.
Learn about your finances
Don't just sign tax returns, be sure you understand them. Get assistance from your tax
preparer if you need explanations.
Identify your financial assets and debts, and begin to save for your future by paying down
debt and budgeting.
If you are married, be sure that you and your husband each understand what you own and
what you owe, and use insurance to plan for the possibility of death or disability.
The Women's Institute for Financial
Education (WIFE) is a non-profit organization which provides financial education,
networking opportunities, seminars, and workshops for women of all ages.
More Retirement Articles:
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