Gender differences matter when it comes to retirement planning


Retirement needs are a concern for all genders for people of working age, but with different age expectations and salary scales, female clients may have very different retirement income prospects than their male counterparts. .

The average life expectancy for women in the United States is 81, with many living into their 90s, but for men it is 76. Because women live longer on average and continue to be paid less for the same jobs, their income stream and retirement needs will be very different from those of their male counterparts.

Women “need to increase their retirement income more,” said Jean Statler, CEO of the Alliance for Lifetime Income, in an interview with His money. “It amplifies the risk and the possibility of running out of money.”

For people still in their 40s or younger, the main focus should be on saving for retirement as soon as possible. People in their 50s should reassess their retirement income needs and realign themselves to better meet those goals.

“My advice in your 20s, 30s and 40s is to achieve a savings rate of 10% to 15%. If you do that, come back when you’re in your 50s,” said retirement expert Anne Lester and former head of retirement solutions for the asset management side of JP Morgan.

The role an advisor plays for retired clients

Financial advisors can help individual clients calculate their retirement income needs based on their current income stream and any retirement savings and investment plans. The positioning of a retirement portfolio will largely depend on the needs of each client and also how close to retirement age they are.

Those close to retirement or at retirement age would likely be in a portfolio preservation phase, although changing market conditions may affect the positioning of this portfolio. People with a longer time horizon can afford to have a higher risk profile.

“There are so many different investment options, it’s not just black and white,” said Chelsea Lobato, vice president and branch manager at Charles Schwab.

Financial advisors play a crucial role in helping their clients achieve their retirement goals and being aware of the particular challenges that female clients face from both a longer retirement horizon and generally reduced income stream during their retirement. work will help advisors better position their clients’ portfolios, and set realistic retirement goals.

Nationwide offers a suite of actively managed ETFs within stocks for financial advisors. These funds include Nasdaq-100 National Managed Income Risk ETF (NUSI)the S&P 500 National Managed Income Risk ETF (NSPI)the National Dow Jones Risk-Managed Income ETF (NDJI)and the National Russell 2000 Managed Risk Income ETF (NTKI).

For more news, information and strategy, visit the Retirement Income Channel.

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