{"id":14382,"date":"2023-03-01T13:57:39","date_gmt":"2023-03-01T19:57:39","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=14382"},"modified":"2023-03-01T13:57:39","modified_gmt":"2023-03-01T19:57:39","slug":"empowering-women-in-retirement","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/empowering-women-in-retirement","title":{"rendered":"Empowering Women In Retirement"},"content":{"rendered":"

As we age, our financial well-being becomes increasingly important. Retirement planning is crucial, especially for women who tend to have longer lifespans, lower retirement savings, and fewer pension benefits than men. <\/strong><\/p>\n

In Iowa and across the nation, women just like you face unique challenges in retirement, but there are ways to help empower yourself and help secure a comfortable future.<\/p>\n

Want to take charge of your retirement and help achieve financial security? Here’s what you should know.<\/p>\n

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Iowa Retiree Statistics<\/strong><\/h4>\n
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As per the Iowa Department of Aging,<\/a> Iowa was home for over 305,000 women aged 65 years or more in 2022, making up 55.2% of the 65-and-over age group. Additionally, the number of women aged 85 and above was estimated to be 48,977, comprising 63.8% of Iowans in the 85-and-over age group. Despite the significant number of senior women in Iowa, many encounter financial challenges during retirement.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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One reason for this is that women in Iowa, like in all other states, tend to earn less than men over their lifetimes. According to the U.S. Bureau of Labor Statistics<\/a>, full-time wage and salary working women in Iowa earned a median usual weekly income of $854 in 2020, which was 83.7% of the median weekly earnings of their male counterparts ($1,020).<\/span><\/p>\n

This table<\/a> shows median real wages for men and women in 2022 dollars for Iowa and for the U.S.. The observed median wage gaps between men and women for various years are also reported.<\/p>\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\nIowa<\/td>\n<\/td>\n<\/td>\n<\/td>\nU.S.<\/td>\n<\/td>\n<\/tr>\n
<\/td>\nMale<\/td>\nFemale<\/td>\n%Gap<\/td>\n<\/td>\nMale<\/td>\nFemale<\/td>\n%Gap<\/td>\n<\/tr>\n
1999<\/td>\n20.8<\/td>\n17.1<\/td>\n-17.6%<\/td>\n<\/td>\n24.0<\/td>\n18.0<\/td>\n-24.8%<\/td>\n<\/tr>\n
2009<\/td>\n22.5<\/td>\n18.5<\/td>\n-17.6%<\/td>\n<\/td>\n24.7<\/td>\n19.8<\/td>\n-19.8%<\/td>\n<\/tr>\n
2019<\/td>\n22.8<\/td>\n19.5<\/td>\n-14.5%<\/td>\n<\/td>\n25.9<\/td>\n21.7<\/td>\n-16.2%<\/td>\n<\/tr>\n
2022<\/td>\n22.3<\/td>\n20.2<\/td>\n-9.5%<\/td>\n<\/td>\n25.0<\/td>\n21.6<\/td>\n-13.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The good news? The observed male-female wage gaps for Iowa are smaller than for the U.S. as a whole. Wage gaps for both Iowa and the U.S. have been falling over time.<\/p>\n

Women Retirees Face Unique Hurdles<\/strong><\/h4>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Another challenge for women in Iowa is that they often take on caregiving responsibilities for family members, including spouses and elderly parents. While this is an essential and fulfilling role, it can impact women’s careers and earning potential, resulting in lower retirement savings and preparedness.<\/p>\n

Furthermore, while women in the U.S. live, on average, three years longer than men \u2014 according to a January 2021 Social Security Administration<\/a> factsheet \u2013 women can be expected to need more savings for a comfortable retirement, yet among retired women, 58% report they collect 50% or less of their pre-retirement income, including Social Security, compared to 44% of men.<\/p>\n

How to Help Maximize Social Security Benefits<\/strong><\/h4>\n

Because the gender wage gap translates into lower Social Security benefits and retirement savings, it makes it more of a challenge for women to help maintain their standard of living in retirement.<\/span><\/p>\n

Social Security benefits<\/a> are a crucial component of retirement income for women in Iowa, so by utilizing Social Security benefits strategically, women can potentially help increase their retirement income.<\/p>\n

Women can claim Social Security benefits as early as age 62<\/a>, but taking benefits before reaching full retirement age (FRA) can lead to a reduction in monthly payments. FRA for Social Security benefits depends on the year of birth and ranges from 66 to 67 years for those born between 1943 and 1960.<\/p>\n

However, delaying Social Security benefits until FRA or beyond can result in higher monthly payments. In fact, for each year that women delay taking Social Security benefits beyond FRA until age 70, they can receive an 8% increase in monthly payments. Therefore, delaying benefits until age 70 can result in the highest possible benefit amount.<\/p>\n

By understanding the impact of claiming Social Security benefits at different ages, women in Iowa can help make informed decisions about when to start receiving benefits to help maximize their retirement income. Seeking professional advice from your retirement income advisor (preferably a Fiduciary<\/a>) can help women in Iowa make the most optimal decisions about Social Security benefits and other retirement planning strategies.<\/p>\n

Save More for Retirement<\/strong><\/h4>\n

Women should strive to save as much as possible for retirement,<\/a> including contributing to an employer-sponsored retirement plan or individual retirement account (IRA). Catch-up contributions are a great option for those aged 50 and older.\u00a0To take advantage of catch-up contributions, there are a few steps you can follow:<\/p>\n