On last week’s Crash Proof Retirement Show, Phil Cannella and Joann Small commemorated Mother’s Day by paying special tribute to the most important woman in all of our lives.
“It was a very wise man who once said, ‘God can’t be everywhere; therefore, let there be moms!’” said Phil Cannella.
With everything our mothers do for us throughout our lifetimes, we all want to see them enjoy their golden years to their fullest extent. Part of that is spending time with the grandchildren, but an equally important element is assuring their financial security in retirement. Joann Small, co-host of The Crash Proof Retirement Show, is proud to specialize in helping women in retirement to navigate the unique issues specific to females.
“Therefore, we are emphasizing the importance of women becoming educated in retirement,” Joann told the listening audience.
“Mothers spend their lives bringing us into the world, taking care of us,” added Phil Cannella, “so at the end of their lives, we want to assure that they are protected.”
In addition to their roles in raising families, 21st-century women are making just as strong an impact in the professional world. Phil and Joann pointed out that as of this year, over 100 women are serving in Congress for the first time (101, to be exact.)
But the journey to retirement remains considerably different for a woman. Between taking time away from the workforce to bear children, to raise those children—not to mention the notorious pay discrepancies women face in many professions—saving for retirement years can be a challenge for women.
Phil Cannella pointed out the dichotomy between earning power and life expectancy as yet another challenge women are facing. “On average, women are living about 10 years longer than men, so they need more money for retirement to cover added healthcare costs,” said Cannella.
Statistics from the Employee Benefit Research Institute (EBRI) show that while women and men contribute roughly the same amount per year to their IRAs, men ultimately end up with larger nest eggs.
Joann Small asked Alicia Munnell, Director for The Center for Retirement Research at Boston College, about the top issues facing women in retirement. “Our whole retirement system is income-based,” said Munnell. “Women work fewer years on average and earn less on average. If their husbands die first, those with pensions lose some or all of that money, and Social Security income goes down. Also, the expenses associated with a husband’s death can eat into household assets.”
There is hope, however, as additional studies show that most women would benefit from greater education in the area of retirement during their working years. Phil Cannella and Joann Small are uniquely qualified to provide that education as Retirement Phase Experts.
“Women have made great strides in recent years,” summarized Phil Cannella, “but there is room for so much more improvement in retirement preparation.”