Women and Retirement: How do you plan to celebrate your 100th birthday? Are you among the millions of wives, widows, divorcees and never-marrieds who are asking the tough questions about Women and Retirement? Are you aware of the many positive choices and options available to you?

"Retirement planning? I don't think my husband gave it much thought. I know I didn't. We had his pension; some life insurance. It just worked out, though I know we were awful lucky.

"I think it's tougher today, especially for women. I mean, look at me. If I'd known I was going to be a widow for going on 22 years next March, I'd have given this whole 'women and retirement' question a lot more thought."

Question: Why are women asking more and more tough questions about retirement?

Answer: Because they have to.

Consider this: Nearly one-third of all women who are 65 today will live into their nineties.²

Consider this, too: Within the next 30 years, the number of women over age 65 is expected to triple.³

Consider this, three: 85% of women in retirement will be widowed or otherwise alone at some point.⁴

Once upon a time, nobody gave much thought to retirement. It just sort of happened. People worked hard, saved a little, and retired after 40 years. Then they lived off their savings, a modest pension and a few hundred dollars a month from Social Security.

Though perhaps a bit simplified, that "save-and-spend" model of retirement planning worked fairly well for two reasons: First, a number of large employers offered defined benefit pensions, paying guaranteed income streams to retirees for life. Second, people simply did not live all that long after retirement. It lasted anywhere from a few years to a decade or two.

That cozy scenario has changed."The save-and-spend model of retirement planning needs reformation," says Ted Mathas, executive vice president of New York Life Insurance Company. "The new retirement reality will require future generations of retirees to create those [income] streams themselves."⁵

Women are leading the call in saying, "Wait a minute, here. Something needs to be done." Maybe it's because 85-year-old mothers are talking to their 60-something daughters, who in turn are thinking about what could happen to their own 40 or so daughters.

The bottom line is that women in ever increasing numbers are starting to recognize that - married, single or otherwise involved - they must take the retirement planning bull by the horns and make it their business to know what to expect and what to do when it comes to long-term retirement security. And while men are also beginning to see the need to ask new and tough questions, they're not quite as tuned in – at least yet – as their female counterparts.

For example, a comprehensive retirement planning survey sponsored by New York Life Insurance Company shows women are addressing their needs and asking the tough questions like never before.⁶ Specifically:

57% of the women (and 43% of men) expressed concern about funding their retirements beyond age 85.

76 % of women (62% of men) are concerned about possible Social Security benefit cutbacks.

78% of pre-retired women (67% of men) list "generating retirement income" as their number one retirement planning priority.

Why all the fuss? Remember, that save-and-spend retirement model no longer works. Here are some reasons why:

Life expectancy has gone through the roof. By far, the biggest cause for concern is that lifeline that keeps getting longer and longer, especially for women. This means a retirement nest egg that might once have been expected to last ten or so years may not have to stretch 30 or more. Many people, men and women, they face the risk of outliving their retirement money and spending their final years financially struggling, perhaps even destitute.

The numbers are truly amazing. Look back a century. A woman born in 1900 had, on average, a life expectancy of 48 years. That figure has skyrocketed, steadily climbing until, as of 2004, it now stands at 80. That is a phenomenal increase of more than 65%.⁷

The Year You Were Born	1900	2004
Life Expectancy for Men	46.3	75.2
Life Expectancy for Women	48.3	80.4

Yes, that's great news but only for those who are financially prepared. There are no models or examples to follow from the past, as tens of thousands of people will live to see the 100-year mark and beyond in the years to come. It's no wonder that perhaps the greatest threat to retirement security has become the danger of living too long – of outlasting resources. This makes it difficult to estimate how big your retirement nest egg should be.

Now, for the toughest part of all: They have good reason to be concerned. On top of the issues of longevity, many people are flat-out unprepared financially for retirement, reports the Employee Benefit Research Institute.

According to the EBRI's 2006 Retirement Confidence Survey, most Americans simply assume they will enjoy a comfortable retirement. However, "more than two-thirds (68 percent) of current workers say they and their spouses have accumulated less than $50,000 in retirement savings.⁸ Even if that money grew at an unlikely 10% return, the annual return would be a paltry $5,000 a year, or abut $417 a month. Even if you add in Social Security, the average monthly benefit for a widow living alone in 2006 was $967.⁹

Is it any wonder, then, that women today are tuning in and becoming increasingly aware of their needs? Men are concerned, too. However, on this one, guys, the ladies are leading the charge. They're asking tough questions and listening to the hard answers.

Fortunately - and this is perhaps the biggest advantages women have over men when it comes to retirement planning - women recognize that they lack the necessary information to make sound decisions. Another result of the 2006 NYLIC survey showed that 51% of women (compared to just 29% men) acknowledged that they were unable to cite a safe annual withdrawal rate of retirement money that could sustain them during their entire lifetimes.

Women also showed a willingness to find out more and turn to experts. About two-thirds of women surveyed work with a financial professional; just over half (51%) of the men seek professional financial advice.

Suggestions from NYLIC:

Husbands and wives together need to take a long, hard look at their two-tiered retirement needs. It is team effort. Specifically ...

1. Start socking money away in anticipation of a long retirement together. Take advantage of employer-sponsored 401(k) plans, IRAs and individual annuities. Plan for a long and prosperous retirement.

2. Men, the actuarial fact is that your wife will likely outlive you. One of the best ways to help protect her financial security and dignity after you are gone is with adequate life insurance. Review your coverage and make sure it is sufficient.

Women, whether married or single, take it upon yourselves to learn more about your long-term financial needs and the many positive options available to you. Explore ways to assure yourself of a lifelong income stream, no matter how long you may live. There are number of excellent choices available.

Men and women should remember that professional advice is readily available. Talk to your New York Life agent. Among your agent's many services, he or she is the business of helping clients like you achieve financial security in retirement.

1 True story, based on author interview, August 2006

2 "Making Your Money Last Forever," The Actuarial Foundation, 2003

3 "Older Women Fact Sheet," U.S. Administration On Aging, 2000

4 "Lifetime Income: The New Retirement Challenge," New York Life, 2006

5 "Americans Lack Knowledge About How to Turn Retirement Savings Into Sustainable Income," New York Life Insurance Company, 2006

6 "Matthew Greenwald & Associates, Inc. survey" on behalf of New York Life, May 15, 2006. The data featured here were gathered through a telephone poll survey conducted by premier research firm Matthew Greenwald & Associates, Inc. on behalf of New York Life. The telephone interviews were conducted between February 9 and March 9, 2006. Survey participants were all at least 41 years of age, solely or jointly responsible for financial and investment decisions in their households, and had at least $100,000 in investable assets. The sample was evenly split between retirees and pre-retirees and between men and women.

7 "Life Expectancy at Birth," National Center for Health Statistics, 2006

8 "Many Americans' Retirement Hopes Are Filled With Holes," EBRI Press Release, April 4, 2006

9 "2006 Social Security Changes," Social Security Administration, October 14, 2005

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