Does a lifetime
of hardework entitle you to financial security in your retirement
and old age?
NEW YORK, Jan. 13, 2004 -- Over
the past two decades, the burden of financial planning for
retirement has largely shifted from the employer to the employee,
yet few Americans are ready to meet this challenge. So says a new
report, A Simple Guide to What Everyone Needs to Know about Money
and Retirement, prepared by the Women's Institute for Secure
Retirement (WISER) and the Heinz Family Philanthropies, and bound
into the February issue of Good Housekeeping, on newsstands today.
"Much as we may hate to
face it, retirement is looming closer and closer for the boomer
generation," said Patricia Haegele, Senior Vice President and
Publisher, Good Housekeeping. "But expectations for an easy
transition from the workforce into the 'golden years' are
unrealistic in today's economic climate. Without thoughtful
planning, women especially are at risk of financial insecurity.
Working with WISER has helped Good Housekeeping give women the
most important facts about financial goals which will ensure them
a comfortable retirement."
Teresa Heinz, Chairman of the
Heinz Family Philanthropies whose Foundation underwrote the report
said, "If we are going to change the face of poverty in old
age, people need the kind of information contained in this guide.
I am proud of our partnership with Good Housekeeping magazine, and
of their willingness to bring this kind of critically important
information to their readers."
According to the 16-page
pull-out booklet, people are living longer today, with the
estimated retirement lifespan now averaging 20 to 30 years, and
rising. But as people live longer, the safety nets that many
assume are in place to support them financially in their
retirement are increasingly eroding and even totally evaporating.
-- Social Security is designed
to be a safety net, not a primary source of retirement income. The
average monthly Social Security benefit for men is $1,015, and for
women, $779.
-- The earlier you retire, the
lower your Social Security payment will be. The longer you wait,
the more your monthly payment.
-- The age for Social Security
eligibility is slowly climbing. Those born after 1960 will not
reach full retirement age until they are 67, not 65 as many still
assume.
-- Pension plans are not
required by law, and fewer and fewer companies are offering them.
Today, less than one-fifth of working Americans participate in
traditional pension plans.
The good news is that there are
tools, information and resources to help American men and women
prepare for their retirements. But it requires active
participation in the decision making processes, to ensure that the
investments and savings plans you participate in will meet your
needs.
A Simple Guide to What Everyone
Needs to Know about Money and Retirement explains in clear,
concise question and answer format everything from 401(k)s, to
IRAs, as well as traditional stocks, bonds and mutual funds. For
example: If a woman gets divorced, does she have a right to part
of her husband's company pension or savings plan? What about long
term care insurance, disability insurance -- are these options
going to be open to me when I need them? These questions and many
others are addressed in the guide.
In addition to appearing in Good
Housekeeping, the guide to retirement has been translated into
Spanish and will appear in the US Latino edition of Good
Housekeeping.