retirement planning

Constructing an Effective Retirement Plan

retirement planning

Woman Planning Her Retiremtn


Female Baby Boomers still under the age of 65 have some years left in which to make appropriate adjustments to their existing retirement planning strategies.


Females born during the Baby Boomer era have both unique needs and common concerns when it comes to retirement planning. According to a recent AARP Public Policy Institute report, sixty percent of women born between 1946 and 1964 are not sure that they will have sufficient resources to enjoy a comfortable retirement.

This figure is in stark contrast to only fifty-one percent of men born during the same period.

Good Cause for Concern

Unfortunately, fears over funding a comfortable retirement are not just paranoia. The numbers bear them out. Social Security benefits are typically the heart of any retirement portfolio. The amount one is eligible to receive correlates directly to prior earnings levels during working years.

Older women who have lost their jobs have a harder time getting new employment. Even those fortunate female Baby Boomers who maintain continuous employment throughout their working years earn substantially less than their male colleagues while outliving them by several years. This leads to lower incomes and higher overall healthcare costs for women in retirement.

A Dangerous Guessing Game

According to AARP’s report, Baby Boomer women tend to underestimate the total amount of money they will need for an adequate retirement. What is even worse is that they tend to estimate the amount of funds they will require purely by guessing. Coming up with figures off the top of your head is clearly an inappropriate retirement planning methodology.

Effective Estimations Essential

Most female Baby Boomers are still under the age of 65. Therefore, they have some years left in which to make appropriate adjustments to their existing retirement planning strategies. The first step in constructing an effective retirement plan, of course, is having the right tools at one’s disposal.

A good starting point is the federal government’s Retirement Estimator. This estimator tool allows you to receive accurate estimates of future Social Security retirement benefits based on your individual earnings history. You may make adjustments for anticipated increases in future income and other personal factors that may change over time.

After visiting the Social Security Administration’s Estimator, your next step should be to visit a private-sector financial website retirement calculator. offers several dozen retirement-related calculators. You may determine how much is necessary to set aside in a 401(k), IRA, mutual fund, or other retirement investment account in order to meet your specific retirement goals.

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Photo: Ed Yourdon