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Women are less prepared for retirement than men. Here’s why

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Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.

Why women are less prepared for retirement than men
Women are less prepared for retirement than men, with just 62% protected compared to 76% of their male counterparts, according to a recent study in this article from CNBC. Women have a greater need to save more because they live longer, incur higher costs when it comes to health care, as well as experience what is called the motherhood penalty, which can result in lost wages estimated at $16,000 annually, according to the study from Nationwide Advisory Solutions. “You can find an advisor that meet the needs of both you and your spouse,” according to the head of the Nationwide Retirement Institute in Columbus, Ohio. “But what is important is to find someone who creates that environment to make you feel welcome.”

Protect clients’ home and retirement with the right insurance
Retired clients, particularly older homeowners, frequently overlook important property and casualty coverage strategies, especially if they decide to cut costs post-retirement and access senior programs without consultation, according to an article from TheStreet. Seniors are advised to review their personal insurance policies to make sure there are no gaps in coverage before they encounter health problems or natural disasters. Retirees must also check on whether their homeowner’s insurance policy covers home replacement costs in case they experience a serious catastrophic event, an HUB International Personal Insurance executive advises.

How Americans are saving for retirement
Most Americans are saving for retirement and more than half are doing so with defined contribution plans, according to a Fox Business article. Other methods of saving for retirement include savings not stored in retirement accounts and IRAs, according to the article. While nearly one-quarter of Americans don’t expect to ever retire, many still have some form of savings, such as defined benefit pensions, real estate and a personal business. However, many non-retirees are struggling to save despite a growing U.S. economy, with about half expected to undergo a shortfall in their retirement savings plan, according to Fidelity Investments.

The biggest mistakes clients make with Social Security
Clients nearing retirement are advised to wait until age 66 to claim their full Social Security benefits, according to a Bankrate article. However, once retired, there are many obstacles clients should consider that could ruin their retirement, according to the article. Retirees are advised to have a personalized approach to their Social Security or look for an experienced advisor to help optimize or plan for their retirement and thoroughly assess how much money they will receive in order to fully maximize their benefits. Also, looking for other sources of income would help retirees to fully cover their expenses upon retirement.

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