Sometimes I Feel Like a Piece of Bologna

Who Will Fund Your Retirement?

A study from the Harvard University Generations Policy Program edited by Paul Hodge, Chair, Global Generations Policy Institute, suggests that the aging of America’s baby boomer women is the most urgent issue facing our nation in the 21st century.

He points that that since women spend more of their years in care-giving for both children and aging parents, they have less time to build for retirement. In addition, women generally earn less than men.

There’s really nothing new in this study. It reinforces what we’ve known for years. What it can do, however, is serve as a reminder to Gen Sandwich women (and men) to plan for our own retirement. Don’t count on Social Security, which penalizes those who move in and out of the workforce and which may not be solvent by the time we get there anyway. (What we know for sure is that there will be a lot of Boomer retirees and far fewer workers to support us, so the prognosis for Social Security isn’t one I plan to bank on.)

Anything you can do to take control of your retirement fund will pay off in the long run. Invest a little each month in your own IRA. You’ll be amazed at what a small amount, invested regularly, will grow into when it can accumulate free from taxes and can reap the power of compounding. And the earlier you start, the better off you’ll be. We started investing very small amounts in our 30s and have watched those IRAs grow into sizable nest eggs for our retirement.

It’s not depending on the government that’s going to give you security as you age. Government policies can change overnight, blown as they are by the winds of politics. This nation was founded on individual responsibility, and that’s what will give us the best hope for our retirement.

Labels: Baby Boomers, retirement, sandwich generation, Social Security, women