Do female Internet entrepreneurs ever retire? It doesn’t seem to be a topic on anyone’s radar in the Internet community. But, elsewhere it caused quite a news brouhaha when Bloomberg News recently featured the Financial Fitness Report. It looked at retirement funds of females and males, age 45, who are planning on retiring at age 65 and live on 70% of their income.
Females are $268,000 short of projected retirement needs while males are only short $212,000.
The number crunchers’ reasons for a difference.
Women have interrupted career income due to having children, being stay-at-home moms and caring for elderly parents or relatives. Consequently, the social security contribution is smaller.
Working women, in general, contribute put more into retirement plans. However, again job interruptions cause a smaller contribution amount and consequently, a smaller retirement benefit.
Working women, for the most part, continue to earn 79 cents to every $1.00 earned by men in the current economy. In terms of retirement funding, women would have to set aside $126 to meet every $100 set aside by men.
Because women live longer than men (ave. of 2.3 years), they incur greater costs for investment annuities, long-term healthcare insurance, and out-of-pocket medical expenses.
Additional factors include women relegated to minimum wage jobs, those unable to return to comparable incomes due to the 2008 recession, loss of economic stability due to divorce or employment loss to debilitating illness or injury.
So, why are female Internet entrepreneurs less concerned about retirement income?
Their 10 reasons are …
- Able to take work experience and career knowledge and package it into income generating products and services
- Able to create multiple layered price point products and services from simple products to high-end coaching
- Able to repurpose content information into different income delivery systems
- Able to create multiple business ventures with different products or services
- Able to create a flexible schedule to work around family responsibilities
- Able to get off the ground due to low start-up costs compared to other business endeavors
- Able to continue working as long as desired since no one has to know your real age
- Able to avoid gender bias by entering any marketing arena without having to identify as female
- Able to work from almost anywhere and under almost any circumstances
- Able to benefit from business tax deductions
At whatever stage of life a woman enters Internet entrepreneurship, she not only has the opportunity compensate for any retirement loss, but also the ability to create a retirement surplus.
I’m curious, do you ever see yourself retiring from your Internet endeavor?
Sources:
http://www.kiplinger.com/slideshow/retirement/T047-S001-reasons-women-will-never-retire/index.html
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Cuz we rock, that’s why. We will live longer and hopefully we will learn to better enjoy our life. Plus, like you said, we have skills and know how to turn it around and focus on many things.. while men.. one.. thing… all.. the.. time. lol
Totally agree – we rock! Now, we know that, but we need to get that message out to men in a means and language they can understand.
I don’t see myself retiring from it so much as capitalizing on a well-thought-out plan of products and services that will provide residual income.
The idea of residual income has always been an important financial tool. Not everyone understands its value and what it can mean for long term income. Sounds like you’re planning for the long haul.
Joyce,
I see myself enjoying my internet endeavor long after “retirement” . Why? Because I do what I love, I love what I do, and I am helping other increase self worth along the way. My work at present is 100% volunteer and as business ( 501(c)3 non-profit, National Seizure Disorders Foundation) grows I look forward to being paid what I am worth and having the lifelong financial security that loving what I do will bring me.
That’s wonderful that you have found something you are so passionate about and that it allows you to continue as long as you wish.
Congratulations and best wishes as you grow your foundation.
Joyce great point , good tips and no probably not going to step away 🙂
Suzie, I think you speak for a lot of us. We’re going to be blogging for as long as we can
Great list and definitely an important topic Joyce. A few years ago I engineered my third reinvention and quit my juicy corporate job, leaving behind the company expense account, car and bennies. In a way that was a form of retirement because I walked away from the traditional job lifestyle and I am now officially unemployable. 🙂 Since then I’ve published a few books and am doing some coaching which I intend to expand. At this point, I’m loving what I do, working harder than ever but take breaks whenever I need or want, so I feel like I have the best of both worlds, and living in Hawaii is kind of a bonus.
Okay, Marquita you definitely get bonus points for living in Hawaii. When I was teaching Freshmen students I had to explain to them that despite their chosen career goal, they were likely to have numerous career changes throughout their working life and they needed to plan for career changes. The Internet has opened a whole new vista of income generating opportunities, and we get to play wherever we want for as long as we want.
It’s difficult to imagine at this point in time, not working altough I’m sure at some point, I”ll want to slow down and enjoy time to travel etc… With that being said, you can always travel when you have an Internet based business 🙂
Lisa, spoken like a true Internet entrepreneur. Travel and do a little work at the same time. What could be better than that?
I certainly don’t have an internet endeavor, per se, but am working at being a voice for older women (and nurses in particular). I would like to be a full-time author and have an internet/social media presence that people find to be a useful resource. Anyway, I think another reason internet work is so enticing is that there’s not a lot of heavy lifting. In fact, it can still be done despite having several physical disabilities. Yea, internet – the great equalizer!
Joan, you’ve made a very good point. There are many Internet opportunities, especially for those dealing with physical disabilities or acting on their behalf.
There are so many avenues to explore, and I’m sure you will find being a voice for older women very rewarding.
Hi Joyce 🙂
Great post and very thought-provoking! As I just started my entrepreneurial career about 4 years ago (mid-life) I do not see myself “retiring” from it any time soon 🙂 I LOVE what I do and helping people get their brand out there just by utilizing the power of blogging is my passion!
Thanks for sharing this awesome post 🙂 Really enjoyed!
It’s good to hear that you have found your LOVE. Here’s a toast to a long and happy career of blogging and helping people with their brand.
May goodness so much interesting financial information. And good to know that women own the purse strings of consumers too and having the biggest buying power. I am sure at some point I would decline my internet endeavor but I have not even thought about when – I too have been relishing in many of the pluses that you pointed out. And thank you for pointing out a few more that I did not know or think of…great stuff!
Yes, women are now the major decision makers regarding money and hold greater wealth than men, but we still need to have a means to continue generating income.
What I really like about Internet marketing is that it gives women that opportunity and the flexibility to work hard at times and slow down at others. Thanks for sharing Teresa.
Because I am a curious person who always wants to be creating something and involved in projects, I personally don’t see myself as officially retiring. My mother actually worked until she was 78 and would have stayed on longer if the company hadn’t requested her retirement.
I think for many of us, the idea of creating residual income is one of the ways to ensure long term steady income long into our futures. The world has changed and I have seen many people “retire”, who decline in health when they no longer have things they are no longer engaged and active in their lives. I am a stand for equal pay for equal work and only hope the younger generation will have better wage parity as they enter the work force. Although there are many in the younger generation who are more proactive and entrepreneurial than we were.
Good point about the younger generation Beverley being more proactive about entrepreneurship. With the dramatic economic shifts we’ve seen in the last twenty-some years, ideas about retirement have changed, equal pay is still an issue, and no one wants to talk about the silent creep of inflation in the purchase of goods and services. I’m just thankful that the Internet came along and opened the door to more financial possibilities for women.
Lots of women I spoke with who started their own internet business told me that they are doing it solely for helping fund their retirement savings. For me, I hope to be able to relax a little more and allow the successful internet business make money for me. This is my hope anyway. Thanks for sharing the stats.
Thanks for sharing, Sabrina. Your experiences are confirming how women are turning to the Internet to supplement retirement savings. While we may be here for our own financial gain, we are also generous in our support of helping other women as well. So, it looks like it’s becoming one large sisterhood online.
Such eye-opening statistics, Joyce! And while I never see myself retiring (I’m a novelist), one day I will slow down my editing business. But writing? I’ll do that forever . . .
Yes, the statistics make you see women’s finances and retirement in a new and scary perspective. That’s why having other options are so important for women. I like your idea of being able to control your editing efforts but still continue to write.
Wow- This belongs in AARP. I retired many years ago with an ok pension, a small 401K I paid into & Ok SS cause I always worked with almost no time off as a mom. Yet I still created a business from home because it suited my personality, creativity & desire to do something. The remuneration is for a disabled family member. And I agree with you that women are in a position to turn past skills into income producing businesses.
Thanks for pointing out about finding a business that matches your personality. When you have the option to do what you love, it makes everything so much easier. Another point is that retirement funds can be relative. What sounded good at one time is not enough in a changing economy. This can make women very financially vulnerable if they don’t have other options later in life.
I tried retiring once when I ended my aviation career. We were moving to a different state after I closed my flight school. Then I got tired of being retired and have been an entrepreneur again ever since. I don’t have any plans to end my online business. I love it.
Retirement is not for everyone. As much as many of us can’t wait to retire, it comes as a shock to find most of us are not really ready for it. We still have a lot to offer. I’m sure all of us are very grateful that you made the right decision to continue to put your talents to use. And, what is more fitting than to be part of Encore Women?