Bleak retirement savings picture for U.S. divorced, widowed women

South of the border, new research has found that one in four “divorced, separated or widowed women” have less than one month’s worth of retirement savings, reports Benefits Canada.

Less than one in 10 divorced, separated or widower men are in the same situation, the article continues, citing research from PensionBee.

“The survey, which polled more than 1,000 employees, found following a marital transition, women (43 per cent) are twice as likely as men (21 per cent) to report having a loose retirement plan and may lack clear retirement goals. Just nine per cent of divorced, widowed or separated women report working with a financial advisor on their retirement, compared to 18 per cent of men undergoing the same life transition,” Benefits Canada reports.

Nearly 23 per cent of “separated, divorced or widowed women” said they were unlikely to be able to survive more than a single month on their retirement savings, the article tells us.

This group, with scant savings, was also seen as less likely to increase their retirement contributions in the coming year, the article continues.

Twenty-three per cent of all “separated, divorced or widowed” respondents have made hardship withdrawals from their retirement savings accounts, the article adds. That compares to 17 per cent of married respondents, Benefits Canada notes.

And while 50 per cent of married people “reported a positive view of retirement,” that number falls to just “28 per cent for women and 31 per cent for men following divorce, separation, or the death of their partner.”

An article in Financial Advisor adds more detail about some of the retirement income problems faced by single, senior American women.

“While 26 per cent of all Americans are predicted to run out of money in retirement, the reality can be worse for single women who need long-term care. Those costs run as high as $248,000, and some 52 per cent of them will run out of money in retirement, according to Morningstar data,” the publication reports.

“With lower income earners, even without long-term-care costs, there’s a really large percentage who are running short of money and having to rely on charity or government programs. And then with higher earners who have more wealth saved, they can oftentimes self-insure,” states Morningstar’s Spencer Look in the article. “So it’s really the middle class, the middle two income quartiles, who are most exposed to this risk.”

Running out of savings can be a great concern for any of us.

Fortunately, here in Canada, government retirement benefits such as the Canada Pension Plan, Old Age Security and the Guaranteed Income Supplement are paid for life.

Members of the Saskatchewan Pension Plan have a retirement option that can help with “longevity risk,” or the danger of outliving your savings. SPP offers a variety of different annuities – you can convert some or all of your SPP savings into an annuity when you retire.

You’ll receive an SPP annuity payment on the first of every month for the rest of your life. Some of the annuities offer survivor benefit options, as well. For full details, see our Pension Guide.

SPP is open to any Canadian who has registered retirement savings plan room. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

If you Google “retirement + plan” you will find lots and lots of information about stashing some of your cash in a safe investment haven so you can crack into it in retirement.

But there’s more to retirement than just the money side of things (even though that aspect is very important). Save with SPP took a look around to see how people go about setting goals for retirement – making use of the newfound time they now have, in abundance.

According to the Kiplinger blog, just as you may have created a financial plan for retirement, you also need to make a plan to live out your dreams, and to “make the next 20 or 30 years purposeful.” 

Sometimes, work slots us into roles that aren’t really aligned with what we think we are about, the blog explains.  “Many times, work is what you do and not so much who you are,” states Catherine Frank of the Osher Lifelong Learning Institute in North Carolina. “Retirement is an opportunity to create a life that reflects more closely who you are,” she tells the Kiplinger blog.

The blog quotes one retiree, retired professor Ronald Mannheimer, who decided to work on his fitness, and volunteer, but found he still had gaps in his day. “Keep open time to explore, to perhaps research what you may want to do next,” he tells Kiplinger “But you should be able to look forward to a calendar of activities.”

OK, so we want to spend time doing things that we have always wanted to do. What if we can’t think of any?

There’s a helpful list at Financial Advisor magazine. They suggest becoming a teacher’s aide, working in retail, working as a tour guide, being a driver, volunteering (or working for a non-profit), and athletics, among other ideas.

There are more ideas over at Marketwatch, including “taking up a sport,” getting a hobby, starting a business, and (of course), travel.

The Retirement Field Guide reminds us what not to do – don’t waste time “watching too much TV,” while “having an empty calendar,” or you will find you’ve become a hermit. They offer similar ideas for retirement activities, including learning new skills (say, music), being a mentor, joining or starting a club, and many more.

It’s very, very hard to visualize retirement while you are still working. Very hard.  It’s not like being on vacation. If anything, it’s like every day is the weekend. The advice from the various bloggers cited here is sound – take some time now, while you are working, to think about what you want to do with your hard-earned time. Talk to folks who are already over the wall and enjoying retirement, and you’ll be surprised how busy they have become.

Even doing only things you like often requires a bit of cash. A tremendous resource for creating retirement income is the Saskatchewan Pension Plan. The SPP is pretty unique – it’s an open defined contribution pension plan. You can contribute up to $6,300 a year towards your retirement, and SPP will grow your savings (with professional investing at a low cost) until that wonderful day when you move into fitness and hobbies full time. Then, you can collect those grown-up savings in the form of a monthly, lifetime pension cheque. Check them out today!

Written by Martin Biefer
	Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock. He and his wife live with their Shelties, Duncan and Phoebe, and cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22