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New Study Shows Women at Greater Risk in Retirement than MenPosted by Randy on: 2005-10-25 07:32:56 in category:
Retirement Headlines [ Print | Permalink / 0 Comment(s) ] New Study Shows Women at Greater Risk in Retirement than Men Tubbs Jones Supports Legislation to Help Women Attain Steady Retirement Income WASHINGTON, Oct. 20 /PRNewswire/ -- A new study released today by Americans for Secure Retirement (ASR) shows that women are at greater risk than men to experience a decrease in living standards in retirement. Congresswoman Stephanie Tubbs Jones, member of the House Ways and Means Committee, has introduced The Retirement Security for Life Act (H.R. 819/S. 381), which would help all Americans, particularly women, maintain economic security throughout their golden years by encouraging the use of lifetime annuities as a way to ensure a steady stream of income in retirement. "This new study shows that, on average, a lifetime of earning less income, accruing fewer retirement benefits and often some time spent in widowhood means American women face greater economic risks in retirement than men," Tubbs Jones said. "This study underscores the need for legislation like The Retirement Security for Life Act, which would go a long way in helping women secure a steady paycheck for life." The study, "The Female Factor: Why Women Face Greater Retirement Risk and What Can Be Done To Help Beyond Employer-Based Retirement Programs," was prepared by Cindy Hounsell, Executive Director of the Women's Institute for a Secure Retirement (WISER), and WISER Program Director Pat Humphlett. Key findings of "The Female Factor" include: - Women Earn Less Wages, Accumulate Less Benefits Than Men - The median salary for women working full-time in 2003 was $30,734 compared to $40,668 for men, which translates to a woman earning roughly $523,000 less than a man over a lifetime. Moreover, women spend less time in the workforce than men, leaving them with less accumulated Social Security benefits and fewer years vested in an employer-based retirement plan. - Current Income Levels Show Risks Ahead for Baby Boomer Women - In 2003, the median income of women aged 65-74 was $12,143 compared to $23,161 for men. In 2002, women aged 65 and older had a median asset income of only $1,028 a year, which amounts to roughly $86 per month. The percentage of women aged 75-84 living in poverty in 2003 was 13.5 percent compared with 7.4 percent for men. - Women Save Less, Receive Less Retirement Income - Only 44 percent of working women participated in a pension plan in 2002. The average Social Security payment for retired women in 2002 was $774 per month compared to $1006 for men. Social Security is replacing only about 42 percent of a retiree's pre-retirement income, and it is the only source of income for 25 percent of unmarried women. - Women Need Additional Assets to Last a Lifetime, Annuities Can Help - Most women will live 20-30 years in retirement. Because women have a longer life expectancy than men, many will live alone as widows in retirement. By taking the risk and guesswork out of saving, annuities can help women ensure a regular stream of income to augment Social Security and other savings. "It is our duty to make sure that America's mothers, daughters, sisters and colleagues are provided with the tools to help them adequately prepare for retirement and manage those savings so they last a lifetime," Tubbs Jones said. Legislation, introduced by Reps. Nancy Johnson (R-CT), Stephanie Tubbs Jones (D-OH), Phil English (R-PA) and John Tanner (D-TN) and Sens. Gordon Smith (R-OR), Kent Conrad (D-ND), Olympia Snowe (R-ME), Hillary Rodham Clinton (D-NY), and called The Retirement Security for Life Act (H.R. 819, S. 381) would address many of the issues cited in this report by encouraging Americans to use lifetime annuities as a guaranteed source of income in retirement. Under this proposal, individuals would not pay federal taxes on one-half of the income generated by lifetime annuities, resulting in approximately $5,000 of tax savings for a typical American in the 25 percent tax bracket. SOURCE Office of Congresswoman Stephanie Tubbs Jones Web Site: http://www.house.gov/tubbsjones Those looking for early retirement we recommend. http://www.retirement-plan.us/retire_early.php |
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