Limiting Liability

by James Lucidonio

Insurance is an important part of a person’s overall financial picture.
There can be events in life that customers didn’t plan for and subsequently, may not be prepared for. A customer may be unprepared for a diminished financial status after divorce or the death of her spouse. In extreme cases, a customer could be alarmed to discover that the house she thought was almost completely paid for actually carries a full mortgage, or that the life insurance policy that she thought was supposed to be the family’s financial safety net had been cancelled, reduced or borrowed against. The savings she assumed would fund retirement are now needed to pay for day-to-day living expenses.
Now in the midst of grief or anger, she can also be faced with financial uncertainty. How could a scenario like this happen? It can happen if she doesn’t take an active role in family financial decisions.
Based on statistics, American women, on average, live about seven years longer than American men. This means that women are more likely to spend some retirement years on their own.
Though many women recognize the need to plan for retirement and for financial independence should they unexpectedly find themselves on their own, few are actually taking independent actions toward those goals.
The 2006 Allstate “Retirement Reality Check” survey found that only 32 percent of women are planning for retirement separately from their spouse or partner.
In fact, the majority of respondents-both men and women-are not taking independent actions in case they have to retire alone.
I personally believe women in particular should take responsibility for their financial futures. For example, women on average earn 76 cents for each dollar a man earns. And women are more likely than men to leave the workforce temporarily to care for dependents, meaning they would earn less money and accrue smaller Social Security and pension benefits.
Taking responsibility doesn’t necessarily mean acting alone; it means working with one’s spouse or partner to agree on goals and identify the financial steps to help achieve those goals. It means recognizing that one goal could be to provide for a woman’s likely longer lifetime by saving adequately and ensuring the couple is comfortable with the financial decisions and able to manage the finances independently, if necessary.
To get started on developing a plan for retirement, there are a multitude of informational resources available from newspapers and magazines to online sites. A review by a financial representative can also help identify one’s current and future needs and help determine solutions to achieve set goals.
And, most importantly, anybody can get into the habit of saving something each month, even if it’s just putting $5 or $10 into a savings or money market account. By taking an active role in planning for the financial future, women can help ensure that they will have the opportunity to truly enjoy their Golden Years.
James Lucidonio of Hammonton is an Exclusive Agent for Allstate New Jersey Insurance Company. For more information, please call 561-6155.