Longer lives, leaner retirement?

If you like to make to-do lists, how often does "assess retirement plan" land at the top? Never? (It's OK to be honest.) When you're busy with day-to-day duties, your retirement years may not cross your mind. But it is important to take time to plan for your retirement – especially since you may face some unique challenges saving for it.

Consider that women:

• Live longer than men. On average, a woman retiring at age 65 can expect to live another 19 years, three years longer than a man retiring at the same age.
• Earn less than men. According to the Institute for Women's Policy Research, in 2009, a woman earned just over 80 cents for every dollar a man earned. So even if you are saving the same percentage as your male counterparts, you may be saving less money.
• Are more likely to take time out of the workforce to care for children and/or aging parents, reducing the opportunity to save in employer-sponsored retirement plans.
• Have typically accumulated less in their retirement accounts. A 2008 study by Hewitt Associates found that the average plan balance for women is nearly $47,000 less than the average for men, partly due to women's tendency to invest more conservatively.*

To-do: assess retirement plan

Reviewing your plan with a financial advisor can help you determine if adjustments may be in order, such as:

Increasing your contribution rate. Be sure to contribute at least as much as is necessary to receive the maximum matching contribution, if your employer offers one. You may also want to bump up your contributions each time you receive a salary increase.

Rebalancing. Over time, market fluctuations may shift the weight of your investments away from the percentages you originally set up to be in line with your goals. Rebalancing brings your plan back into alignment with your original target allocation.

Reallocating. As you get closer to your retirement date, you may want to consider changing your asset allocation to include more conservative investments.

Ready to take action and assess your plan? Visit your plan's website for more information.