Kevin McCormally: I am Kevin McCormally of Kiplinger's and I am here with Janet Bodnar, Deputy Editor of Kiplingers Personal Finance magazine to talk about women and retirement. Janet are there any special considerations that women need to take into account when they are planning for their own retirement?
Janet Bodnar: Yes Kevin women tend to have more check of work careers then men do. They move in and out of the work force more frequently, they change jobs more frequently. Sometimes they move out of the work force altogether to stay home with kids or to take care of elderly parents. As a result they accumulate fewer assets for retirement and yet they live longer life spans so the money has to last long.
Kevin McCormally: So, it's sort of Double whammy. What can women do about it?
Janet Bodnar: Well one thing they need to do is start saving early, as soon as they get a job 21 years old start putting money aside and if they change from job to job , take the money with them, don't cash out their retirement plan. If they drop out of the work force to take care of kids get a spouse IRA. They can have one as long as their spouse is working it's very important that they have their own retirement plan, then once they get back into the labor force they can take advantage of catch up contributions for older workers and another thing they really have to do is invest their money more aggressively, take more risks.
Kevin McCormally: What do you mean by more risk? What do they need to do?
Janet Bodnar: Well they need not totally throw away their money aside but they do need to do more invest more heavily in the stock market. Women tend to be more concern of investors again because they are worried about preserving their assets. But if you are going to have your money in the bank account it's not going to grow fast enough to give you the amount of money you need to last you during your fairly lengthy retirement.
Kevin McCormally: Anything else that women can do to get their money they are going to need for comfortable retirement?
Janet Bodnar: Well if they are married they are lots of things they can do in conjunction with their spouse for example they should make sure that they are the beneficial if their spouse has an IRA. If their spouse has a pension benefit it work or don't sign the way they rights to that women spouses do have the right to some of their husbands benefit. They shouldn't sign that right away thats another important thing for them to do. They should also know that they are entitle to a portion of their husbands social security, even if they are widowed or even if they are divorced they are entitled to that and it's again money that can help see them through a fairly lengthy retirement specially if they are going to be alone.
Kevin McCormally: Okay, thank you Janet.
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