The Longevity Factor
Time — for a good book, uninterrupted by a deadline or must-do project. Freedom — to take a present-laden trip to see the kids, help out at the community bazaar, or make a spur-of-the-moment decision to extend that ski weekend another two days. Peace of mind — to snuggle on the couch until midnight on a week night watching a favorite movie, not worrying about this bill or that one, or the need to obey the call of an alarm clock at the crack of dawn.

Heaven? No. Just retirement. If you're looking forward to enjoying a peaceful, comfortable retirement someday, you're not alone. By age 65, five out of six people have hung up the briefcase or tool belt and retired.

The fly in the ointment: As a woman, you may have to put in more effort before you get to enjoy a worry-free, financially secure retirement.

One reason is the "longevity factor." Women on average outlive men by six years... 73 for men versus 79 for women. Those are just the life expectancies at birth. By retirement, the gap widens even further. Since women still tend to marry men older than themselves, it is estimated that seven out of ten women today will outlive their male counterparts by at least 15 years. So, by the time they're 85, nearly six out of ten (57%) women are living on their own.

Plus, most women have fewer retirement resources. Retired women, on average, receive $352 each month from Social Security, while men receive nearly $612. At the same time, more than six out of every 10 women working today do not have a pension plan, while three-quarters of all retired women today receive no pension benefits, which is why it is no wonder 67% of women fear that their savings will run out before they die.

These factors very likely will have a dramatic impact on your lifestyle and standard of living in your senior years. It doesn't matter whether you are married or single; whether you are young and just starting out or so close to retirement that you can almost read the headlines as you dream about leisurely Monday mornings with the paper in bed.

You will in all likelihood need more retirement income than you thought — and you are the one who must make sure it is there. How much will you need? That depends on a number of factors.

One Scenario
Let's assume that you will need $40,000 a year in today's dollars at retirement. Let's further assume that you will live six years longer than a man who is the same age as you. That means you will need an additional $240,000 in income! Some may come from Social Security; some may come from a pension at work. But you may need to make up the shortfall yourself — or run the risk of spending your retirement years struggling financially.

Recommendation:Plan for a long life. If possible, make maximum contributions to qualified plans through work. Sacrifice in other areas if necessary.

Dare to dream. By making little sacrifices today, you can lock in the retirement lifestyle and security you want tomorrow, helping to assure that your retirement years are in fact your golden years — safe, secure, free of financial worry.

The Income Factor
Caught by surprise, their glances locked by accident — two generations divided by a luncheon counter, reverse images connected by what-if expressions. Brenda, crisply dressed and confident, her bag shrugged onto her shoulder, smiled first as she tucked away her newspaper and rose to go. Sandy, her face already tired from the breakfast crowd, juggled the fifty cent tip in her hand. Finally, slowly, she nodded, then smiled. "Knock 'em dead," she said flatly, the unfinished warning left hanging between them. "Thank you," said Brenda. "Thank you."

That women, on average, earn less than men is old news. What is not always so clearly understood is how this "income factor" can directly impact not only your standard of living today, but also your lifestyle in retirement. For many women, unless they start taking steps now, retirement may not be possible. Fortunately, there are steps you can take... but you need to get started.

The "gender income gap" is persistent and well-documented. According to 1998 Labor Department statistics, when a man and a woman work in the same occupation, the woman is likely to earn just 76 cents for every dollar received by her male counterpart.

The simple math: Lower income can result in lower retirement benefits. This is one reason why, when it comes to company pension plans, 61 % of working women today do not have pension plans, while 76 % of women who are now retired receive no pension benefits. Plus, women receive, on average, almost half the Social Security benefits men receive ($4,226 annually, compared to $7,342 for men).

Most serious of all: Many women are not doing anything about their situation. According to the National Center for Women and Retirement Research, over 58 % of female baby boomers have less than $10,000 saved in pension plan or 401(k) plans. So, it comes as no surprise that between one-third and two-thirds of women age 35 to 55 today are expected to be impoverished by age 70.

Recommendation: It doesn't matter whether you are married or single; in your 20s or so close to retirement you can taste it. If you are not already actively and aggressively involved in making sure it will be no-excuse financially secure, it's time to take the plunge.

What To Do Right Now

• Contact Social Security to make sure your earnings records are right and to find out how big your benefits checks will be at retirement. The toll free number is (800) 772-1213. Or you can reach them online at: www.ssa.gov   .
• Do the same with your pension administrator at work, as well as with all administrators from previous positions.
• If possible, make maximum contributions to your employer-sponsored 401(k) and other qualified plans and IRAs, as well as saving after-tax dollars in annuities and other financial vehicles.
• If you're married, work closely with your husband. Remember, odds are that you will outlive him; make sure your financial arrangements reflect that.
• Look before you leap. As a rule, "If you change jobs frequently, over a period of years you may build up vesting with several employers, but you would have built up much more if you'd stayed in one place."
• Bring in professional help. A New York Life agent — professionally trained and experienced — can help you analyze your needs and recommend appropriate solution through insurance and financial products and concepts — at no charge to you. Click here to request a free, no obligation, consultation with a New York Life agent.

Your future is in your hands. Regardless of income, you will be the one who decides your level of financial security in retirement. Take charge of your retirement planning today.

For Love or Money
Joanie and Jake learned a valuable lesson recently. It seems that when Jake works, it is always for love AND for money. No questions asked. But when Joanie "works" — because she has alternated between keeping the home fires burning and earning a paycheck — it is either for love OR for money. The lesson: If they hadn't done some focused retirement planning together, Joanie risked being short-changed big time financially in her senior years. The story is fairly typical.

As a young bride, Joanie worked until the children came, then spent a decade as an at-home mom, followed by nine years in banking before a mega merger left her free, so to speak, to pursue other goals.

Today, they're empty nesters. While Jake works as a self-employed consultant from his office at the house, Joanie divides her time between part-time tax preparation and trying out the latest Martha Stewart recipe on Jake and the dog. It's a great life.

Here's the problem. When looking at their retirement plans, they discovered that after more than 30 years of going about her life's work — sometimes for pay, sometimes for love — Joanie's total retirement benefits will total less than $300 a month. Jake's — the payoff for three decades plus of uninterrupted workforce participation — will be more than ten times that.

The situation isn't all that uncommon. What goes wrong for millions of women like Joanie could be called the "vesting factor." Here are the facts:

Women, on average, in our society leave or change jobs every 4.8 years, according to the Bureau of National Affairs. Men move every 6.6 years.That may not seem significant. However, vesting for pension benefits often does not take place until the five-year anniversary. So, while men tend to vest (acquire ownership) in their pension benefits, women tend to leave right before they vest.(Management Forum, November 1995)

Why do women change jobs more frequently or step in and out of the income-generating workforce? Two reasons:

1. They do it for the kids, taking time off to raise families. According to the Business and Professional Women's Foundation, women take off an average of 11.5 years away from the work force, compared to just one year for men.(Management Forum, November 1995)
2. They do it for aging parents. It is estimated that, nearly half of all women in the work force will have some day-to-day responsibilities for elderly parents. When the conflicting demands become too high, it is the woman who generally leaves the work force to become a full-time caregiver.(Inc. Magazine, September 1995)

As a result, many women end up sacrificing their own financial security in retirement. The real-life statistics are daunting:

• For every year a woman stays home caring for a child, she must work five extra years to replace lost income, pension coverage and career promotion.(The National Center for Women and Retirement Research, 1997)
• Only 38% of women who retired in 1994 received any pension benefits (compared to 58% for men).(Money Magazine , July 1997)
• A woman who takes seven years off over a 40-year career can expect to receive one-half the pension benefits of someone with 40 years of uninterrupted service.(Money Magazine , July 1997)

As husband and wife, Jake and Joanie learned that there was a lot they could do. For starters, they began talking about money — not his money or her money — but their money. They mapped out a retirement strategy that covered the whole range of "what if" scenarios: if he should die first, if she should die first, if they should divorce (yes, it needs to be addressed), if one became incapacitated, and so on.

What about you? If you're married, the two of you need to sit down and discuss your future and make sure you're both provided for. If you're single, you need to plan for yourself. Either way, talk to your pension administrator at work; max out your 401(k) contributions, as well as your IRAs; and consider the vesting factor before you change jobs.

Contact your financial advisor for more information about vesting and retirement planning, and consult a New York Life agent for insurance products that can help you provide for a secure retirement. They will show you that it is possible to work for both love and money.

Nine Things You Can Do to Boost Your Retirement Security
If you're a woman, odds are high that your pension will be lower than that for the men you car pool with to work. So, whether you're a golly-gee kid just starting up the career ladder or a well-established veteran, complete with brass nameplate on the door, you need to do more than just think about boosting your retirement security. Fortunately, there is a lot you can do.

Women as a group get the short end of the stick when it comes to pension benefits. In 1997 the average annual pension benefit was $9,506 for women, versus $18,106 for men. Good for the guys, but what about you?(Money Magazine, July 1997)

Ten things you can do to boost your retirement security:

1. Make a conscious effort to take charge of your own retirement planning. Don't leave it to chance... or your husband. Start saving for retirement. No excuses.
2. Get knowledgeable about finances. You don't need to become a Wall Street wizard. You can learn enough to make intelligent choices — or at least understand the advice of experts — by reading a few books or attending one of those weekend seminars. Investing a few hours learning the basics can pay big dividends in knowledge today, and financial security tomorrow.
3. Make maximum contributions to qualified retirement plans through work and IRAs on your own. No if, no ands, no buts. Just do it.
4. Get into or start an investment club. Not only is this one of the best ways to learn about investing, but it can lead to nice profits. Best of all, investment clubs are becoming the domain of women. Among the more than 17,000 investment clubs that belong to the National Association of Investors Corporations, nearly 42% are all women, 46% are mixed, and just 13% are all men.^* Plus, they're registering better returns than the men-only clubs — 21% average annual return for women, versus 15% for men.^** You can learn more about investing at the MainStay Funds   Web site.(*Maxing Out: Why Women Sabotage Their Own Financial Security by Colette Dowling, Little, Brown, 1998; **American Demographics, August 1997)
5. If you're single, don't wait for Mr. Right to come along and solve all your problems. Too many women torpedo their own financial security by deferring to their husbands — even the one they haven't met yet. Besides, even if he is Mr. Right, you will probably outlive him. Your best bet: Take charge of your own future.(Maxing Out)
6. If you're married, take an active part in your household's finances. Become economic partners with your husband. Make money a hobby, something you can do together. Bonus: Couples who make money decisions jointly tend to have a better personal relationship, as well. "They're less likely to file for bankruptcy... or divorce."(Money Matters, January 1998)
7. If you're married, discuss the critical differences between joint and single life pension and annuity benefits. Under a single life option, when he dies, his benefits die with him. Also, since you probably will outlive him, make sure that your (his and yours) estate plan provides for you after he is gone.
8. Look before you leap when changing jobs. Don't go solely for a bigger paycheck; make sure you won't lose retirement benefits. Also, you may want to think twice before retiring early — before your benefits are maxed out.
9. Become financially aggressive. Historically, women have tended to be conservative with money. While this is changing, many women still tend to focus too much on protecting principal than on achieving solid returns.(Maxing Out)

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