Women & Retirement

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5) You can save for retirement even if you don’t belong to an employer-sponsored pension plan.
Anyone receiving compensation, or married to someone receiving compensation, can contribute to an IRA. In addition, if you are self-employed, you can start a Keogh plan, a Simplified Employment Plan (SEP), or a Savings Incentive Match Plan for Employees of Small Employers (SIMPLE).

As with other retirement savings plans, there may be tax consequences, and possibly penalties, if you withdraw your savings early.

6) Track your Social Security earnings.
More women than ever work, pay Social Security taxes, and earn credit toward a monthly income at retirement. These earnings can mean some income for you and your family in the form of monthly benefits if you become disabled and can no longer work. If you die, your survivors may be eligible for benefits. In addition, you may be eligible for Social Security benefits through your husband’s work and can receive benefits when he retires or if he becomes disabled or dies. Special rules apply if you and your husband have been employed and both have paid into Social Security. Special rules also apply if you are divorced, or if you have a government pension. You can calculate your benefit estimate by visiting the Social Security Administration’s Web site.

7) If you divorce, you may be entitled to a portion of your spouse’s pension benefit.
As part of a divorce or legal separation, you may be able to obtain rights to a portion of your spouse’s pension benefit (or he may be able to obtain a portion of yours). In most private-sector pension plans, this is done using a Qualified Domestic Relations Order (QDRO) issued by the court. Consult your spouse’s pension plan administrator to determine what requirements the QDRO must meet.

8 - Know the rules that govern your pension plan and the pension plan of your spouse if either of you dies.
The rules are different for defined contribution and defined benefit plans.

A defined benefit plan, which is a traditional pension, ensures the participant a specific monthly benefit at retirement and may state this as an exact dollar amount. Monthly benefits could also be calculated through a formula that considers a participant’s salary and years of service. A participant is generally not required to make contributions in a private sector fund but most public sector funds require employee contributions. Unlike defined contribution plans, the participant is not required to make investment decisions.

Some advantages of Defined Benefit Plans are that they a) guarantee retirement income security for workers, b) offer cost of living adjustments, c) pose no investment risk to participants, and d) do not depend on the participant’s ability to save, and best of all are a tax deferred retirement savings medium.

The drawbacks of Defined Benefit Plans are that they are somewhat difficult to understand by participant and are not beneficial to employees who leave before retirement

A defined contribution plan provides an individual account for each participant. The benefits are based on the amount contributed and are calculated by the participant’s income, plan expenses and market gains and losses. Some examples of defined contribution plans include 401(K) plans, 403(b) plans, employee stock ownership plans and profit sharing plans.

Advantages of Defined Contribution Plans are that they are a) tax deferred retirement savings medium, b) participants have a certain degree of control on how much they choose to contribute c) can be funded directly through payroll deductions d) lump sum distributions may be eligible for special 10 year averaging e) participants can benefit from good investment results f) are more easily understood by participants than Defined Benefit Plans.

The disadvantages of Defined Contribution Plans are that it is more difficult to build a fund for those who enter the plan late in life and 2) participants bear the investment risk.

Defined Benefit Plans
If you or your spouse belongs to a defined benefit plan (a traditional pension plan), the surviving spouse may be entitled to receive a survivor benefit when the enrolled employee-spouse dies. This survivor benefit is automatic unless both spouses agree, in writing, to forfeit the benefit. Check the SPD or consult with the plan administrator about survivor annuities or other death benefits.

If you are a beneficiary under your spouse’s defined benefit pension plan, protect yourself by requesting a copy of the SPD and other plan documents that describe your spouse’s vested benefits. Make the request in writing to ensure you receive it, but note too that you may be charged a fee for the information.

Defined Contribution Plans
The rules may be different if you or your spouse participates in a defined contribution plan. Consult the plan administrator for details about spousal rights. Planning and saving for retirement may seem like goals that are far in the future. Yet saving, especially for retirement, should start early and continue throughout your lifetime. So, if you are going to take away anything from this article, it should be this: 1) Get started now. The most important thing to do is to begin an investment program, regardless of how much you invest. Make savings a priority, and you could be on your way to greater financial security. 2) Review your portfolio regularly. Don’t invest and forget, and make sure you are well diversified in stocks and bonds, not just overly invested in conservative options like fixed income funds.

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Planning and saving for retirement may seem like goals that are far in the future. Yet saving, especially for retirement, should start early and continue throughout your lifetime. Here are four reasons why saving matters to women – and especially to you!

Do You Know?

Of the 60 million wage and salaried women working in June 2002, just 47 percent participated in a retirement plan. Remember, even small amounts can earn interest and add up over time.

Women are more likely to work in part-time jobs that don't quality for a retirement plan. And working women are more likely than men to interrupt their careers to take care of family members; they work fewer years and contribute less toward their retirement. If you work and if you qualify, join a retirement plan now.



On average, a female retiring at age 55 can expect to live another 27½ years. Savings can increase a woman's chances of having enough money to last during her retirement.

By and large, women invest more conservatively than men and receive lower rates of return from their investments over time. Choose carefully where you put your money and learn how to make your investments grow.

Start Here...Start Now

Here are eight questions to help you think about retirement and take charge of your financial future:

Do you work for an employer that offers a retirement plan?
If your employer offers a pension or retirement plan, join it as soon as you can and contribute as much as the plan allows. Most employers with a 401(k) plan match a percentage of the employee's contribution. This match is at least 50 percent of the investment in many 401(k)s. That's like getting free money! While all job categories may not be included in your employer’s plan (those of part-time or temporary workers, for instance), your job may be one that is.

Remember, by saving early you have time on your side. Your savings will grow and your earnings will compound over time.

Have you worked at the job long enough to earn a pension?
In many companies, you may have to work for 5 years to become eligible to receive pension benefits. Some workplaces have a shorter vesting period (vesting simply means that you have worked long enough to earn the right to benefits from a savings or pension plan).

Too often employees, especially women, quit work, transfer to another job, or interrupt their work lives just short of the time required to become vested. Ask the personnel office, pension plan administrator, or union representative about the vesting period and other details of your company’s plan.


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Do you keep copies of the documents that define the provisions of your pension plan?
In addition to asking questions of company or pension plan officials, you should keep copies of the summary pan description (SPD) and any amendments. The SPD is a document that pension plan administrators are required to prepare, and it outlines your benefits and how they are calculated. The SPD also spells out the financial consequences – usually a reduction in benefits – if you decide to retire early (earlier than age 65 in many plans). You probably received a copy of the SPD when you joined the pension or savings plan, but you may request another one from your employer or plan administrator. Also remember to keep pension-related records from all jobs. They provide valuable information about your benefit rights, even when you no longer work for a company.


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What happens to your pension if you change jobs?
You may lose the pension benefits you have earned if you leave your job before you are vested. However, once vested you have the right to receive benefits even when you leave your job. In such cases, the company may allow, or in certain cases may insist, that you take your pension money in a lump sum when you leave. However, other companies may not permit you to receive your pension money until retirement. The rules for your plan are spelled out in the SPD.

A word of caution: If you receive your pension in a lump sum, you will owe additional income taxes, and may owe a penalty tax. A better way is to reinvest your savings in another qualified pension plan or an Individual Retirement Account (IRA) within 60 days. You avoid tax penalties and you keep your long-term retirement goals on track.

If you do want to reinvest the money, it is important that you do not directly receive it. If you receive the money directly, you will have to pay a 20 percent withholding tax on the amount you receive and then file for a refund in the next year, providing proof that you have transferred the funds to an IRA. Instead, instruct the pension plan to transfer your pension money directly to an IRA you have established or to another qualified pension plan. This is easy to do using simple forms supplied by the new plan. If you want help with the forms, representatives of the plan are generally available to assist you.


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Do you know how you can save for retirement even if you don’t belong to an employer-sponsored pension plan?
Anyone receiving compensation, or married to someone receiving compensation, can contribute to an IRA. In addition, if you are self-employed, you can start a Keogh plan, a Simplified Employment Plan (SEP), or a Savings Incentive Match Plan for Employees of Small Employers (SIMPLE).

As with other retirement savings plans, there may be tax consequences, and possibly penalties, if you withdraw your savings early.


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Are you tracking your Social Security earnings?
More women than ever work, pay Social Security taxes, and earn credit toward a monthly income at retirement. These earnings can mean some income for you and your family in the form of monthly benefits if you become disabled and can no longer work. If you die, your survivors may be eligible for benefits. In addition, you may be eligible for Social Security benefits through your husband’s work and can receive benefits when he retires or if he becomes disabled or dies. Special rules apply if you and your husband have been employed and both have paid into Social Security. Special rules also apply if you are divorced, or if you have a government pension.

To calculate your benefit estimate, visit the Social Security Administration’s Web site.


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Are you entitled to a portion of your spouse’s pension benefit if you and your husband divorce?
As part of a divorce or legal separation, you may be able to obtain rights to a portion of your spouse’s pension benefit (or he may be able to obtain a portion of yours). In most private-sector pension plans, this is done using a qualified domestic relations order (QDRO) issued by the court. You or your attorney should consult your spouse’s pension plan administrator to determine what requirements the QDRO must meet.


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Are you aware of the rules that govern your pension plan and the pension plan of your spouse if either of you dies?
The rules are different for defined contribution and defined benefit plans.

If you or your spouse belong to a defined benefit plan (a traditional pension plan), the surviving spouse may be entitled to receive a survivor benefit when the enrolled employee dies. This survivor benefit is automatic unless both spouses agree, in writing, to forfeit the benefit. You will need to check the SPD or consult with the plan administrator regarding survivor annuities or other death benefits.

If you are a beneficiary under your spouse’s defined benefit pension plan, you may want to request a copy of the SPD and other plan documents that describe your spouse’s vested benefits. You will probably want to make the request in writing, and you may be charged a fee for the information.

The rules may be different if you or your spouse participates in a defined contribution plan (such as a 401(k) plan). Consult the plan administrator for details about spousal rights.

[donsaeid]

رئيس فراكسيون زنان مجلس خبر داد*

افزايش بودجه دستگاه*هاي حمايتي براي خودكفايي زنان سرپرست خانوار


رئيس فراكسيون زنان مجلس گفت: در سال 86 بودجه دستگاه*هاي حمايتي براي مهارت آموزي،خودكفايي و اشتغال زنان سرپرست خانوار افزايش مي*يابد.


فاطمه آليا با تأكيد بر اين*كه بودجه مختص زنان سرپرست خانوار در سال 86 افزايش مي*يابد، افزود: براي تأمين نياز مالي زنان سرپرست خانوار به غير از افزايش بودجه بايد اقدامات زيربنايي*تري در نظر گرفته شود.

وي گفت: منظور از توانمندسازي و اشتغال زنان سرپرست خانوار اشتغال آن*ها در مراكز دولتي نيست بلكه مي*توان با توانمندسازي اين زنان و اشتغال خانگي كرامت و حرمت زنان سرپرست خانوار را حفظ كرد.

رئيس فراكسيون زنان مجلس با اشاره به اين*كه به رغم كمك بهزيستي و كميته امداد تأمين نيازهاي زنان سرپرست خانوار وظيفه وزارت رفاه است، افزود: بايد تكيه*گاهي همچون ايجاد يك صندوق براي زنان سرپرست خانوار در نظر گرفت.