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Factors Affecting Retirement Savings

By SHP Financial Blog | February 08 , 2017

Broken nest egg.jpg

The traditional retirement model was based on a rigid assumption that people worked 40 years until they were 65, and then enjoyed a retirement supported by a company pension plan.

That model doesn’t exist anymore, at least not for the average worker. Social Security data shows that the average career span is only 38 years for men and 29 for women,1 which means many people now spend more of their lifespan not working than working.

Today, people are more likely to move from one company to another several times in their career, with the potential for being out of work for some time. This is especially true for women, who, according to some, can benefit from job hopping as they continue to fight for gender equality in the workplace.2

Women are also likely to need more retirement savings because they live longer and may also have more/expensive health issues.3

Even if you feel you are on course for a financially confident retirement, it’s also important to consider the possibility of “speed bumps” along the way — things like an unexpected health issue or a natural disaster you’re not adequately insured for.

Another wrinkle that has become more common as people are nearing retirement is divorce. Between 1990 and 2010, the divorce rate of people 50 and older doubled. A separating couple is likely to need 30 to 40 percent more money to live apart. 4

Many factors can contribute to difficulties saving for retirement. Working with a financial advisor to help create a financial strategy for retirement can help you take the steps necessary to work toward the financial goals you have set.

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Content prepared by Kara Stefan Communications. 

1 Suzanne Woolley. Bloomberg. Nov. 1, 2016. “You Risk a Ragged Retirement If You’re Counting on These Numbers.” Accessed Dec. 23, 2016.
2 Vivian Giang. Fast Company. April 18, 2016. “Why Women Job Hop More Than Men.” Accessed Jan. 23, 2017.
3 Anne Tergesen. MarketWatch. Dec. 7, 2016. “Why women pay 20% more for health care in retirement.” Accessed Dec. 23, 2016.
4 Martha M. Hamilton. The Washington Post. Dec. 2, 2016. “Divorcing late in life? Don’t let it destroy your retirement.” Accessed Dec. 23, 2016.


We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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