Gender gap in retirement savings is a huge problem

Register now

Another inequality women clients have to overcome
Most Americans are unprepared for retirement, but what may be even more disconcerting is the "huge gender gap in retirement readiness," according to this article in Motley Fool. Single women between the ages of 60 to 64 are estimated to have a savings shortfall that is more than $37,000 greater than their male counterparts, according to figures from the Employee Benefit Research Institute. As women strive to boost their salaries, advisors should encourage them to do the same with their retirement savings by making consistent contributions.

Help workers brainstorm their post-retirement purpose
Employees should not think of retirement as stepping down from the life they've been leading, but rather the start of a new chapter with a whole new set of financial responsibilities, an expert at Forbes writes. "While it’s true that [they] can eventually figure it out and find a rewarding new direction, that can take years, just at a time when each year is precious and shouldn’t be wasted," according to the author.

Nursing homes costs can destroy a employee's retirement savings
Annual nursing home costs in the U.S. are rising even faster than healthcare, and are expected to exceed $100,000, according to this article from CBS Moneywatch. Those costs pose a risk to people who have no Medicaid coverage or long-term care insurance, according to a Georgetown University Medical Center researcher who led a study on the topic. "For someone who is not poor enough for Medicaid or who doesn't have long-term care insurance," the researcher says, "this will be a huge financial burden.”

When employees move jobs, their 401(k) doesn't need to
Many workers don't know that when they start a new job, their 401(k) assets don't have to move with them and in some cases should not, according to this CNBC article. Financial advisers can help by reminding employees of the potential taxes and penalties triggered by cashing out, and that they have the option to leave their assets in a former employer's plan if their new job doesn't offer a better one, according to the article.

This article originally appeared in Financial Planning.
For reprint and licensing requests for this article, click here.
Gender issues Retirement planning Client communications Long-term care facilities 401(k)