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While today’s woman is far more successful in her own finances than women of past generations, there is still much work to do. One crucial piece of the puzzle is managing our money to ensure that our present good fortune continues through our Golden Years. Why? We’ll let the US Census Bureau data do the talking.

Fact: 80 percent of men die married, while 80 percent of women die single.
Fact: 75 percent of women living in poverty today were not poor before they were widowed.

Sadly, women today are likely to outlive our spouses or partners by an average of 5 years. And although this may seem financially insignificant when planning for a 20 to 25 year retirement, it could potentially be our most expensive years. And that’s not the only monkey on our back.

• In 2005, women earned 84 cents for each dollar earned by men.
• The average income of a married woman is less than that of single women because the former take on more family responsibilities.
• Many women either stop working or work less hours when they have young children. This means they are not contributing to a company pension plan or an RRSP.
• Women tend to either be self-employed, have part-time jobs or work for a flat rate, all of which influence the savings.

Clearly we face some challenges.

We need the same monthly income to live on as men, but continue to earn less. Our broken work patterns or part time jobs have drastically impacted our ability to save and hence, reduced the future value of our RRSPs and pension plans. And due to increasing divorce rates, we have found ourselves not only serving as our families’ primary caregivers but also providing its sole or principal financial base. As a result, many of us scratch our heads wondering what money or time could possibly be leftover to put towards planning our retirement.

We all have valid excuses for not having accumulated a hefty savings. But as compelling as each of our stories is, the fact remains that older women who are single or widowed are most at risk for poverty. Although one would think that the prospect of spending our Golden Years in a state of financial hardship would be more than enough motivation to inspire serious planning, less than 35 percent of women today actually make that commitment. Please act now! It does not matter whether you are single, married, widowed, a businesswoman or a stay-at-home mom-take charge of your retirement planning today. Regardless of income, you will be the one who decides your level of financial security in retirement. And if it seems too daunting of a task to plan for your future years, just remember: “A journey of a thousand miles begins with a single step.” Lau tzu

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