It is already a well-established fact that women tend to live longer than men and this has important ramifications from the perspective of planning for a successful future and a long and healthy retirement. New studies show that women can benefit from staying in the workforce for longer to help make up for some of the challenges affecting their ability to save enough money.
A year of no earnings can cause your benefits to drop significantly from the perspective of social security. A recent study conducted by the Boston College Center for Retirement Research found that women are three times as likely as men to have at least one year in which they earn no money. Women typically tend to earn lower wages as well, meaning that women have a powerful reason to postpone their retirement and their Social Security claims and consider the benefits of working longer.
Stepping out of the workforce while waiting to get closer to retirement age can make this problem more serious since the peak earning years for people of all genders are usually clustered towards the end of careers.
It can also be challenging to find a comparable job as you get closer to retirement age because many employers will still to prefer to invest the time and training in employees that are likely to stay for a longer period of time.
This unique set of challenges presents women with an opportunity to take control of their retirement and estate planning by prolonging leaving the workforce for a few years at minimum. Scheduling a consultation with an experienced Massachusetts estate planning attorney is extremely important for protecting your interests.