It may be a wise financial choice.
It may be a good idea for a woman to retire later rather than sooner. Leaving the workplace after 65 may help position a woman for slightly greater retirement income and reduce some of the pressure of funding her “second act.”
Women tend to receive smaller Social Security payments than men. This doesn’t necessarily reflect a difference in earnings. Social Security benefits are calculated based on a person’s 35 highest-earning years; yet, a woman may spend fewer than 35 years on the job due to time out for child care and eldercare.1
If someone works less than 35 years, Social Security fills in the “missing years” with zeros. Women born between 1946-60 average 7.7 years of zero earnings. Additional years at work mean fewer zeros and greater monthly benefits.1
Every extra year worked means one less year of retirement to fund. Working longer also gives a woman’s invested retirement savings more time to grow and compound further.
Working longer leads to larger monthly Social Security benefits. For each year a woman delays claiming Social Security after age 66, her benefit payout rises by 8%.2
Retiring later could be a good move. If you are thinking about how and when to transition into retirement, call or email me-now may be the right time to talk about it.
Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Patriot Financial Group, a registered investment advisor. Patriot Financial Group and Summit Star Financial are separate entities from LPL Financial. 1 Fool.com, "Why More Women Should Work Into Retirement" (December 11, 2016) 2 Kiplinger.com, "Why You Should Delay Social Security Benefits" (January 2017) The information contained in this e-mail message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete. This material was prepared for John A. Gordon and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note: Investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. Tracking # 1-643627