–(HISPANIC PR WIRE – CONTEXTO LATINO)–We all look forward to enjoying our “golden years”; however, once you retire, you could discover you’re financially incapable of living a leisurely life. Without a sound retirement plan, that feeling of living comfortably may seem impossible. According to the U.S. Department of Labor, Social Security provides a minimum foundation of financial protection, yet one third of Hispanic retirees depend on a monthly check as their sole source of income, putting themselves at risk for financial insecurity and poverty.
“Hispanic wage earners often make sacrifices for their loved ones, but when they leave the workforce, they sacrifice their lifestyle significantly,” says Theresa Cruz-Myers, associate vice president of Marketing and Education for Nationwide Retirement Planning. “This is especially true for Latinas who may think that their children or relatives will care for them in their older age–planning is not a priority,” she adds. Hispanics also send money to their families in their native countries which could put a significant dent in funds that should have been set aside for future savings.
According to the U.S. Department of Labor, women are less likely to be financially informed than men and generally live five to seven years longer . “Women are twice as likely to receive income during retirement that is below the poverty level,” says Cruz-Myers. According to some reports, on average, Latinas earn 52 cents for every dollar men earn. “Lower pay means less cash to save, smaller Social Security checks and lower pension payouts, “Cruz-Myers counsels.
PLANNING IS KEY
Cruz-Myers advises that planning early for retirement can help prevent impending problems. Nationwide Retirement Solutions offers these tips to help you prepare:
— Educate yourself on the variety of retirement plans available. Social Security along with pensions, personal savings and investments are key to enjoying life without worries.
— The sooner you start, the more time your money has to grow. Start a plan now and stick to it.
— Younger people should start planning for retirement before getting married, starting a family, or buying large ticket items like a house or car.
— If you are living paycheck to paycheck, set aside a small portion to savings. Over time you will see a considerable savings if you invest in the right type of plans.
— Use automatic payroll deductions to your advantage. You can have your money deposited into mutual funds or other investments with little work on your part.
— Contribute all you can to a 401K plan that your employer offers and will often match.
— A professional financial planner can help provide expertise, which can save you time, help you manage your money, motivate you to take action, and help you through a financial crisis.
For more financial planning advice, Nationwide recommends calling your local financial planning professional or contacting the Financial Planning Association to speak with a trained professional in your area.