Looking at the financial issues that women face may seem daunting, but there are steps you can take and resources to help you plan your way to a secure financial future. You have already achieved a positive step by being a public employee with a pension through the Wisconsin Retirement System. Let's look at how you can maximize your WRS benefits and take more steps to a financially secure future.
Increasing Your Savings for Retirement
Financial facts:
- Men are more likely than women to be saving for retirement (81% vs. 61%).
- Married women in two-income households — more so than single women or married women in one-income households — are at the greatest risk of not being able to maintain their standard of living in retirement.
The WRS benefit, when combined with Social Security, is intended to give you a retirement income that is 50-85% of what you earned before retirement. This percentage comes from a full career (25-30 years) under the WRS. However, women are more likely to have a smaller benefit saved for retirement than men due to less earnings or time away from work. There are a couple of ways you can use your WRS benefits to save more.
Make Additional Contributions
The WRS is known for stable investment performance. Use it to your advantage by making additional contributions to increase your WRS retirement benefit savings. Start small and gradually add more contributions throughout your career or make up for lost time by making catch-up contributions.
Invest through the Wisconsin Deferred Compensation Program
If available through your employer, the Wisconsin Deferred Compensation Program is a great way to invest in different options that fit your risk tolerance. This supplemental program also offers a free retirement readiness review where you can meet with a WDC retirement plan advisor, analyze your current situation, and see where you are on the path to retirement. The review will identify areas for improvement and specific suggestions for ways to meet your goals.
Other Savings Options
If you don't have the WDC through your employer, look at other saving options that your employer may offer. You can also go to the Investing page to use the free resources available. Learn more about investing through our webinars and videos or through education offered by one of our partners. Make informed decisions by using the tools provided on the page, such as checking out your investment professional or the fund analyzer.
Health Savings Credit
If you are a state employee, you can convert unused sick leave into credits that will help you pay for your group health insurance program premiums in retirement. Go to the Accumulated Sick Leave Credit Conversion Program page to learn more.
Build Financial Security
Financial facts:
- Women are paid less than men, typically 82 cents for every 1 dollar that men make.
- Women hold 2/3 of the student loan debt and have difficultly paying loans.
Women face challenges building financial security for many reasons such as the difference in pay, time spent away from work to take care of others, and often a lack of financial knowledge. It's never too early or too late to start taking charge of your finances.
Wisconsin Strong: Your Financial Security
We have compiled a collection of resources and information to help you build financial security and achieve financial wellness at any age. Go to the Wisconsin Strong program pages to to start creating a financial plan, learn about investing, or see targeted resources and information based on your career stage: new hire, mid-career, nearing retirement, or retired. You can take one of our online webinars on a variety of topics offered throughout the year or use the eLearning modules or tools provided through our financial partners. You will find information on budgeting and planning, debt, student loans, investments, home ownership and mortgages, long-term care/elder care, flexible spending accounts, planning for a family and child care, planning for retirement, estate planning, identity theft/cybersecurity, and much more.
Social Security
Financial fact: Nearly 55 percent of the people receiving social security benefits are women.
Social Security provides an inflation-protected benefit that lasts as long as you live. Social Security benefits are based on how long you’ve worked, how much you’ve earned, and when you start receiving benefits.
Create a social security account to view your retirement benefit estimates at different ages or dates you want to receive benefits, and view possible benefits for your family.
Other Social Security Benefits
You may be eligible for other types of benefits based on your situation. For example, if you become a widow, you can get widow's benefits if you are age 60 or older; or as a spouse, you are potentially eligible for benefits on both your own and your spouse’s work record. Read the Social Security's What Every Woman Should Know brochure or check out the Social Security for Women page.
Divorce and Your Finances
Financial fact: Women’s household income falls 41% after a divorce, more than twice as much as men’s.
Before you divorce, you should get a clear understanding of your household's finances. Start by keeping a detailed record of all your current expenses and try to anticipate any future ones. Then look to gather all of what you might consider “financial documentation,” including credit card statements, bank statements, retirement and investment account statements, any ledgers for loans and income tax returns.
Wisconsin Divorce
Wisconsin presumes that all property, other than property that a party receives as a gift or through inheritance, will be divided equally (after considering all debts). To achieve an equal division of property, the judge may award property to one party and a cash payment to the other party. The court may also give your ex up to 50% of your WRS retirement benefit account. For more information, go to How Divorce Can Affect Your WRS Benefits.
Social Security and Divorce
If you were married at least 10 years and unmarried when you become eligible for Social Security, you are eligible for Social Security based on your ex’s record. Some women sign divorce decrees relinquishing their rights to Social Security on their ex’s record. Those clauses in divorce decrees are never enforced. Go to Social Security's Ex Spouse Benefits and You page to learn more.