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Social Security component important, but only part of plan: many factors must be considered to achieve retirement plan success.

Article Excerpt
Americans are living longer, and that means they need more savings to live comfortably in retirement. Unfortunately, far too many people--particularly women who traditionally earn less, build less retirement savings and live longer--aren't adequately prepared.

"The latest issue of the Journal for the Mississippi Deferred Compensation Plan and Trust states the poverty rate for elderly women is approximately twice that of elderly men," said Dr. Marianne Hill, senior economist with the Institutions for Higher Learning. "Two-thirds of all women over age 65 have no pension other than Social Security. Certainly one's standard of living can fall if one depends for most of one's income on Social Security."

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Beyond the basics

Hill said additional retirement income can be a necessity for the elderly with high prescription costs or health-related expenses. Just as importantly, if a retiree wishes to enjoy travel, hobbies and entertainment, he or she must have sufficient retirement savings and pensions beyond the basics that can be provided by Social Security.

Women are at a disadvantage with the Society Security system because it pays benefits based on an average of income. Women are more likely to spend years doing uncompensated care for children and the elderly.

"Social Security benefits are computed based on lifetime earnings," said...

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