Photo: Rosie O’Beirne
This post originally appeared at Bankrate. My mother would roll over in her grave if she knew that I wrote about money and occasionally put my personal experiences with it in print for anybody to read.
So I thought it wasn’t at all surprising when the Transamerica centre for Retirement Studies asked women in their 50s and 60s if they ever discussed saving, investing and financial retirement planning with friends or family, the answer they got was a big NO from 30 per cent of respondents and a tepid “occasionally” from 62 per cent. Only 8 per cent said “frequently.”
Most women I know only talk about money when they are squabbling over how to divvy up the check when somebody ordered a drink. That reluctance is one of the reasons that women make less than men. Men ask for a raise — women hope they’ll be given one.
Anyway, Transamerica’s study found that 60 per cent of women in their 60s think that Social Security will be their primary income in retirement. Social Security says that in 2009, the average annual Social Security income received by women 65 years and older was $12,155. That’s a little more than $1,000 a month. I don’t know about you, but I can’t live on that.
If there’s a woman in your life and she’s getting older and she’s not talking about money, chances are there’s a reality gap there that you ought to be nudging her to confront. Here’s a few questions that Transamerica says you might ask to get the conversation started:
- How do you get information about saving for retirement, and what is your decision-making process?
- Do you know how much money you’ll need to retire at the age you want to retire?
- Do you know how you’ll reach your retirement savings goals? What would happen if you lost your job or got sick before your planned retirement age?
- Who do you talk to or where do you go to learn more about saving and investing for retirement? Why?
- Have you ever heard of the Saver’s Credit or Catch-Up Contributions? Do you know if you’re eligible?