Women wor­ried about re­tire­ment: re­port

The Guardian (Charlottetown) - - BUSINESS - Dick Young

Ac­cord­ing to a Fe­bru­ary 2016 on­line In­vestor’s Group study, re­cently re­tired women are more wor­ried than their male coun­ter­parts about stretch­ing funds over their re­main­ing years.

This height­ened con­cern may be re­lated to the well-known fact that, sta­tis­ti­cally speak­ing, women gen­er­ally live longer than men. An­other likely con­trib­u­tor is that, while work­ing, women tend to earn less than men. In a nut­shell, women have less money to spread over more years.

Fi­nan­cial pri­or­i­ties are also dif­fer­ent among re­tired women and men. The study found that it’s more im­por­tant for women to leave be­hind money for fam­ily and char­i­ties, by a mar­gin of 14 per cent. When asked what they would do with an un­ex­pected wind­fall, 67 per cent of women said they were likely to give money to char­ity, while 47 per cent of men said the same.

Of course, over­spend­ing in re­tire­ment can present a prob­lem — but what about un­der­liv­ing? If fear of run­ning out of money makes you ul­tra-con­ser­va­tive, you may pass on ac­tiv­i­ties that help you fully en­joy your golden years.

For ex­am­ple, travel was high on the list of pri­or­i­ties for pre­re­tirees in the study. The vast ma­jor­ity of women (81 per cent) and men (89 per cent) in­tend to spend money dur­ing re­tire­ment on things they want, such as trips and hob­bies. But nearly two-thirds of re­cent re­tirees find it hard to strike a bal­ance be­tween mak­ing their money last and en­joy­ing re­tire­ment.

In­ter­est­ingly, this sen­ti­ment was ex­pressed more often by sur­vey re­spon­dents who don’t work with a fi­nan­cial ad­vi­sor.

The key, it seems, to fully en­joy­ing re­tire­ment is prepa­ra­tion. A Sta­tis­tics Canada study us­ing data from the 2014 Cana­dian Fi­nan­cial Ca­pa­bil­ity Sur­vey con­cluded that re­spon­dents who rely on ad­vice from a fi­nan­cial ad­viser have in­creased lev­els of fi­nan­cial knowl­edge.

So, whether you are a man or a woman wor­ried about hav­ing enough money to fund a long and en­joy­able re­tire­ment, the best step for­ward is dis­cussing your pri­or­i­ties and con­cerns with your pro­fes­sional ad­vi­sor who will help you build a plan — so you can re­tire with con­fi­dence.

This col­umn, writ­ten and pub­lished by In­vestors Group Fi­nan­cial Ser­vices Inc. and In­vestors Group Securities Inc. presents gen­eral in­for­ma­tion only and is not a so­lic­i­ta­tion to buy or sell any in­vest­ments. Con­tact your own ad­viser for spe­cific ad­vice about your cir­cum­stances.

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