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The Top Financial Issues Facing Retired Women in 2017

May 11, 2017 by Catherine Gareri

When you think of your retirement years, you probably imagine a relaxing and peaceful time in life.  Enjoying time with your grandchildren and traveling more may be at the top of your list of things to do; however, there are several factors to take into account to help increase your confidence that your retirement will be financially independent and that you can do all the things that you want to do.  The key to a financially independent retirement is strategizing ahead to avoid the top financial issues facing retired women in 2017.

Increasing retirement age

Starting in 2017, the age of full retirement will be going up incrementally from age 66 to age 67 by 2022.  If you are ready for retirement, you can check out this chart to find out when your full retirement age is, based on your year of birth.  Even though full retirement age is increasing, you are still able to start receiving your Social Security benefits at age 62, although at a reduced rate.  To determine whether it is more advantageous for you to start receiving benefits at age 62, or whether it is better for your situation to wait until full retirement age so you qualify for the full benefit, consult the advice of your financial professional.

Low wages

Even though you are at retirement age, as a woman, you may have taken time off when your children were little, or to help with an aging family member.  Even if you had a good-paying job at the time that you took leave, you probably realized a stagnation of your wages upon re-entering the workforce—and the time off also interrupted your retirement savings going into a 401k or IRA.  The loss in earnings, pay raises, and additions to your retirement account can have a profound effect on your income situation during your retirement years—especially if you find yourself single during your retirement years.

Low interest rates

Even though the Fed is looking to potentially raise interest rates, they are still historically low—and that means that your ability to earn money from your savings is greatly diminished.  Any cash that you have in the bank, whether it be savings, money market, or a certificate of deposit, is probably only earning a trivial amount of money in interest.  Because keeping your assets in liquid-type accounts is not advantageous right now with interest rates so low, you may want to explore other investment options with your investment professional.  They can help direct you towards lower-risk investments that may be able to provide a higher yield than current market interest rates.

High living costs

Social Security increased 3 percent for 2017, which is slightly out-pacing the expected inflation rate this year, of 2.3 percent.  While this core inflation rate does not take into account energy or food, those costs have remained close to the expected inflation rate.  So while you may not realize much of an increase at the grocery store this year, you will most likely see an increase in food prices at restaurants when you eat out.  Increasing wages and benefits among food service workers is one of the factors driving these prices higher this year.

While inflation is still relatively low, that is not all that is involved with your living costs.  If you were to become single in your retirement years, either by divorce or the passing of your spouse, that could decrease your income drastically—and your standard monthly bills will unfortunately not decrease, such as rent/mortgage payment, electricity, water, and gas.

Uncertainty of healthcare costs

The Affordable Care Act brought about several changes and cuts to Medicare, and the uncertainty that comes along with the proposed American Health Care Act truly makes it difficult for retired women (and men) to plan for their healthcare needs and how that might affect their budgets.

High costs of long term care

As a woman, you probably know that your average life expectancy is longer than your husband’s, so it is prudent to plan for a longer retirement.  With this in mind, it may make sense to look at a long-term care insurance policy, as well as work on your estate plan, to help protect your assets, have more say into how and where you may receive long-term care benefits and ultimately leave your assets to your heirs in the least costly, most efficient manner.   But just as important as it is to plan for the worst-case-scenario, it is important to try to maintain a healthy lifestyle, stay active, and hopefully avoid long-term altogether.

Source: ssa.gov


Catherine Gareri, a Senior Associate with Finivi, works primarily with women going through a period of transition in their lives, or who are facing a new life challenge that may require difficult financial and emotional decisions to be made or at least considered, including caring for a loved one. If you need guidance navigating through a difficult life transition, or simply want help with your pre- or post-retirement planning needs, we can help. You can call (800)530-6635 for a complimentary consultation or click here to schedule online.

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Eric C. Jansen, ChFC

Fun Facts About Me

When he is not researching the next great stock to add to client portfolios, you can find him travelling frequently with his family to Jackson Hole Wyoming.

  • Hometown: Chicago, IL
  • Birth Month & Year: November, 1964
  • Favorite Hobby: Goldmining in Nome, AK
  • Favorite Food: Steak at Charley’s Steakhouse in Orlando FL
  • Can't be interrupted when: Watching the Discovery Channel
  • Hidden Talent: Finish Carpenter
  • Something on bucket list: Obtain Helicopter Pilot License
  • Family Pet: Goldfish

Steven C. Johnson, ChFC

Fun Facts About Me

Steve would tell you that one of the best parts of the day is spent talking to clients and relationships that result from it. When away from the office, he loves to travel the back roads of New England enjoying all the great sites that can be found off the beaten path.

  • Hometown: Townsend, MA
  • Birth Month & Year: December, 1967
  • Favorite Hobby: Playing Hockey
  • Favorite Food: Chicken Caesar Salad
  • Can't be interrupted when: Watching the Bruins
  • Hidden Talent: Cooking – Makes a great Thanksgiving turkey
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Frederick M. Lane, ChFC, CASL

Fun Facts About Me

When not managing client portfolios, Fred can be found relaxing with family and friends.

  • Hometown: Nutley, NJ
  • Birth Month & Year: July, 1954
  • Favorite Hobby: Dog Walking
  • Favorite Food: Italian
  • Can't be interrupted when: Listening to Pink Floyd
  • Hidden Talent: Landscaping
  • Something on bucket list: Space Flight - Tourism
  • Family Pet: None

Catherine M. Gareri

Fun Facts About Me

When not caring for her clients Cathy enjoys relaxing in her yard at home.

  • Hometown: Bellingham, MA
  • Birth Month & Year: July, 1957
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  • Hidden Talent: Dog Whisperer
  • Something on bucket list: Spending a couple months on the Almalfi Coast
  • Family Pet: In Between Mastiffs now so a little blue fish “Willy”

Katie E. Moore, CLTC

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When Katie is not busy taking care of her clients, she spends her time being a mom to her two little ones, Owen and Isla.

  • Hometown: Modesto, CA
  • Birth Month & Year: September, 1982
  • Favorite Hobby: Swimming
  • Favorite Food: Mexican Food
  • Can't be interrupted when: I'm cooking
  • Hidden Talent: Climbed Yosemite's Half Dome, twice - no fear :)
  • Something on bucket list: See the Northern Lights and Potty Train my 2 year old
  • Family Pet: Caddy and Sierra – our two cats

Hesper Duval

Fun Facts About Me

Loves spending time with 2 daughters and enjoys participating in 5k obstacle races throughout the year.

  • Hometown: Charlton, MA
  • Birth Month & Year: October, 1981
  • Favorite Hobby: Running
  • Favorite Food: Cheesecake
  • Can't be interrupted when: Reading a good book
  • Hidden Talent: Interior Design and furniture restoration
  • Something on bucket list: To travel cross-country in an RV
  • Family Pet: Charlie and Nora, both black labs from the same litter

Donna Fournier

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When not cheering for the Patriots, Donna spends her free time travelling throughout the United States looking for new haunted places to explore. She loves to wear her cowboy hat and boots when travelling out west.

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  • Birth Month & Year: February, 1961
  • Favorite Hobby: Exploring haunted locations
  • Favorite Food: Pizza
  • Can't be interrupted when: Eating my pizza
  • Hidden Talent: Rollerblading
  • Something on bucket list: Travel to Australia
  • Family Pet:  Had a pet skunk

Danielle Drew

When Danielle does not have her head in a book studying to expanding her financial planning knowledge, she enjoys anything active and outdoors, including visits to the beach and hiking.  

  • Hometown: Dennis, MA
  • Birth Month & Year: November, 1985
  • Favorite Hobby: Working out, concerts, and exploring wineries
  • Favorite Food: Lobster pot pie, cheeseburgers, BBQ, the list goes on...
  • Can't be interrupted when: Working out 
  • Hidden Talent: Country line dancing
  • Something on bucket list: To hike the 48, 4000 footers of New Hampshire
  • Family Pet: none, hopefully a big dog someday

Jay Willwerth, ChFC

Fun Facts About Me

Jay’s days are spent helping clients achieve their financial goals, followed by nights and weekends typically watching his daughters play competitive volleyball.

  • Hometown: Melrose, MA
  • Birth Month & Year: September, 1959
  • Favorite Hobby: Golf
  • Favorite Food: Anything at a Patriot’s Tailgate
  • Can't be interrupted when: Watching the Patriot’s Game
  • Hidden Talent: Competitive Volleyball Watcher (Mostly his 2 daughters)
  • Something on bucket list: Play a round of Golf at Pebble Beach
  • Family Pet: Bella, our Shih-poo
 

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