Commentary: Retirement concerns generally weigh heavy for women

American women are not typically looking forward to retirement. Instead of envisioning the opportunity to step back from work and spend more time with the grandkids or pursue hobbies, a large number of older women are dreading the thought of retirement.

Why? In part, the realities of a challenging economy, longer life spans and fewer guaranteed retirement plans have added a layer of financial stress to the retirement horizon for everyone. And women, who by virtue of their gender roles are more likely to have interrupted work histories, are feeling the pressure.

According to a recent survey of Americans, women are more worried than men about their prospects for a comfortable retirement. While men scored high in concern about having enough to do when they retire, women were more likely to express concern about the financial ramifications of this phase of their lives. Specifically, more women than men said they are very concerned or somewhat concerned about the following retirement issues:

* The rising cost of health care - Eighty-seven percent of women responding to the survey believe their health care costs in retirement will grow faster than their retirement income.

* The cost of living in general - Eighty-three percent of women believe the overall cost of living will grow faster than their retirement income.

* Declining health - Seventy-five percent of surveyed women worry about their health in retirement, wondering if they will require costly health care and have a poor quality of life.

* Outliving their money - Sixty-four percent of women are concerned they may run out of money before they take their last breath.

The reality behind the worry

The women surveyed are not more anxious or fearful than men. Rather, they may simply be more realistic about their finances -- and retirement will be more difficult for women than men. The Hartford survey reveals some reasons why women more frequently report feeling vulnerable about financing their twilight years.

Being single contributes to worry

As it turns out, marital status makes a difference. A much higher percentage of single women age 65 and above are not financially secure compared to their married counterparts. These single, lower- income woman have good cause to wonder how they will make ends meet in retirement if they are struggling now, while they are earning an income.

And it's not just single women who are more likely to be economically disadvantaged. On average, married women who become widowed experience a significant reduction in their earnings, which is not true for men who lose their spouses.

Women feel less prepared -- because they are

While American women are entering and staying in the workforce in unprecedented numbers, there remain gender differences in retirement preparedness, especially when you consider women age 45 and above who left the workforce to raise a family.

Taking time off to stay home means fewer years in the workforce. Less time in the workforce translates to lower overall earnings, which affects your ability to save as well as your social security payout levels in retirement. Plus, not only do women tend to earn less, they also live longer, which can put them in a precarious financial position going into retirement.

Do what you can with what you have

Awareness and preparation can go a long way toward combating retirement anxiety. There are steps women can take to improve their retirement outlook.

Here are some suggestions:

Start saving now. Whether your retirement is almost here or decades away, saving is fundamental. Contribute to your employer- sponsored retirement plan and take advantage of the company match if it's available.

Keep working. Women who remain on the job stay active and connected to others. They also continue to receive a paycheck. Opting to retire early can significantly reduce your annual social security payments, whereas continuing to work beyond 65 means you will get a larger check from the government when you do retire.

Mind your health. It pays to take care of yourself and prevent serious illness to the extent that you can. Exercise, get adequate rest and eat right. Good health at any age makes life more enjoyable and keeps health care costs down.

Have a plan. It's important to have realistic expectations about your income needs in retirement. A financial advisor can help you estimate how much income you will need and how to reach your goals.

(Contact Dena Shapiro Frenkel CRPC, Ameriprise Financial Service Inc.at 410-664-5480 or dena.s.frenkel@ampf.com. Dena's website is located at ameripriseadvisors.com/dena.s.frenkel) This information is provided for informational purposes only. The information is intended to be generic in nature and should not be applied or relied upon in any particular situation without the advice of your tax, legal and/or your financial advisor. Neither Ameriprise Financial nor its advisors or representatives provide tax or legal advice. The views expressed may not be suitable for every situation. Consult with qualified tax and legal advisors concerning your own situation.)

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