Snoqualmie Pass Real Estate, Snoqualmie Pass Properties,
Snoqualmie Pass Homes, Snoqualmie Pass Lots, North
Bend Real Estate, Snoqualmie Real Estate, Carnation Real Estate
When it comes to retirement planning, homemakers need a wake-up call. That’s the gist of a new report, Homemakers Are Not Off the Hook: How Should They Be Planning for Retirement?
The reality is that many workers are at risk of not achieving a financially secure retirement, but homemakers are in worse shape. Two-thirds (67%) of homemakers globally got a low score in the Aegon Retirement Readiness Index, compared to 52% of workers who got a low score. Homemakers are less optimistic about retirement than workers, less likely to be saving for retirement, and significantly, their sense of personal responsibility for retirement is considerably lower than that of workers.
“It’s understandable if someone isn’t working, they don’t have the income to save, but they can be part of the savings process and the retirement planning process—yet relatively few feel responsible for that,” says Catherine Collinson, president of the Transamerica Center for Retirement Studies, which produced the report in collaboration with the Aegon Center for Longevity and Retirement. “We need to make sure homemakers are engaged; there are so many things they can be doing,” she added.
Homemakers, whether men or women, are falling short in retirement, but there are practical steps they can take. (Credit: Getty Images)
Here are some action steps homemakers can take to prepare for retirement.
Make a financial plan with your spouse or partner.Start by creating a budget and a short financial plan, and then develop a long-term retirement plan. A financial advisor can help. By being personally involved in your family’s finances, you’ll have more control over how much goes into savings.
Open a spousal IRA. If you file a joint tax return with your working spouse, even if you don’t work, you can contribute to a spousal Individual Retirement Account. For 2015, you can put away up to $5,500 or $6,500 if you’re 50 or older.
Get educated about your spouse’s savings and employee benefits. Nearly two-thirds (65%) of homemakers believe their spouse or partner’s income will be “very” or “extremely” important to them in retirement, compared to 41% of workers. If your spouse has a pension, he might be offered a one-time lump sum payment, which could extinguish your rights to payouts for life. Don’t sign a waiver of your spousal rights to the plan benefits without knowing the consequences. If your spouse has a 401(k) retirement plan, make sure it isn’t overloaded in risky company stock orhigh-fee mutual funds. And double check beneficiary forms—those control who gets the money when the account holder dies.
Snoqualmie Pass Real Estate, Snoqualmie Pass Properties,
Snoqualmie Pass Homes, Snoqualmie Pass Lots, North
Bend Real Estate, Snoqualmie Real Estate, Carnation Real Estate
No comments:
Post a Comment