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Woman to Woman

Interview with Cindy Hounsell

Older women on their own are five times more likely to be poor than older married couples. For this reason it is crucial that women understand their retirement saving options. For some expert advice on this topic we turned to Cindy Hounsell, J.D., President of Women's Institute for a Secure Retirement (WISER), a nonprofit organization that works to help women, educators and policymakers understand the important issues surrounding women's retirement income.

When should I start saving for my retirement?

The important thing is to start early. As soon as you start working begin to put money away no matter how small the amount. The lesson we all need to learn when we start to receive a paycheck is to live beneath our means. Every successful saver I have ever met says the same thing, "Find a way to save by having the credit union or bank take money directly out of your paycheck before you ever see it."

I'm 55 and have not saved anything for retirement, is it to late to start?

It's never too late, so if age 55 is when you can start saving then just start saving and planning. But age 55 makes it even more important to consider all the ways that you will be able to maximize your future income. For instance, by working longer and delaying taking social security benefits until age 70, your benefits will increase by 8%.

It is important to find ways to cut back on spending if you can and maximize your savings. That may mean making tough choices today, but tough choices are easier to make when you are age 55 than when you are much older. If you have a 401(k) at work, that's one of the best ways to save. Also, don't overlook any former retirement plans you may have even from a divorce. Check your Social Security statement and make sure that your earnings record is correct. To get started exploring options you might have see the WISER web site for the worksheet, Get Your Ducks in a Row. 

What expenses can I expect when I retire?

The biggest expenses are prescription drugs, housing and long term care assistance, and the expenses get bigger the older you live.

My husband of 30 years and I recently divorced, he was the breadwinner, what can I do to protect my social security benefits?

A spouse is entitled to Social Security benefits based on either her benefit or her husband's-the social security benefits are not part of the divorce settlement and cannot be taken away-the big issue is that you have to have been married for 10 years or more to be eligible for your ex-spouse's benefits.