Women and Retirement

FACE THE FUTURE ON YOUR TERMS To schedule an appointment, please call your local Mutual of America office or 866.954.4321.

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A Mutual of America representative can help you determine your time horizon and tolerance for risk—and can also provide additional information about the investment options under your employer-sponsored retirement plan. Whatever path you choose, whatever financial destiny you’re seeking, there are probably many ways you can add more potential across every aspect of your financial life—working to create value, opportunity and, yes, a retirement of your own.

Understanding your options

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You should consider the investment objectives, risks, and charges and expenses of the investment funds and, if applicable, the variable annuity contract, carefully before investing. This and other information is contained in the funds’ prospectuses and summary prospectuses and the contract prospectus or brochure, if applicable, which can be obtained by calling 800.468.3785 or visiting mutualofamerica.com. Read them carefully before investing.

The target date set forth in each Retirement Fund’s name is the approximate date that the fund expects investors to retire and begin withdrawing their account balance. The value of a Retirement Fund is not guaranteed at any time, including at and after the target date. There is no guarantee that a Retirement Fund will correctly predict market or economic conditions, and as with other mutual fund investments, investors may lose money. In addition to a retirement date, individuals should consider their risk tolerance, time horizon, personal circumstances and complete financial situation before investing.

We guarantee that we will credit interest for the life of the contract to amounts in the Interest Accumulation Account of our General Account at a rate at least equal to the greater of (1) any contractual minimum guarantee provided by the contract or (2) the minimum rate required by applicable state law or, if no state law minimum rate is applicable to a contract, the minimum guaranteed credited interest rate will be set pursuant to National Association of Insurance Commissioners (NAIC) standard nonforfeiture law. The NAIC minimum rate is determined in accordance with a formula, and cannot be less than 1.00% or more than 3.00% in any event. We determine whether the application of the formula will change the minimum guaranteed rate each November, and any change is effective the following January 1 for that calendar year. In addition, Mutual of America may credit interest to your contract amounts in the Interest Accumulation Account at a higher rate that we declare from time to time and which may increase or decrease at our sole discretion, although we are not obligated to credit interest in excess of the minimum guaranteed rate. If you participate in an existing Tax Deferred Annuity contract, you should refer to it before making a decision because it may have a guaranteed minimum rate in excess of the formula described above and the advertised declared rate. We compound interest daily on your contract amounts in the General Account to produce an effective annual yield that is equal to the stated interest rate.

The performance of the Separate Account investment options is not guaranteed, and any assets allocated to them may decrease or increase in value. For more specific information about our Separate Account investment options, including industry allocations and fund performance, please visit mutualofamerica.com.

A retirement of our own

We’re committed to helping women save and invest for their retirement

Despite the tremendous strides made by women in almost every other aspect of modern society, preparing for retirement continues to represent a significant challenge. As opposed to other financial matters, thinking about retirement is often put off, forgotten about, left to the management of a spouse or partner, or to the hope that Social Security will be enough. Unfortunately, this lack of preparation can present a serious financial shortfall to women as they enter and advance in their senior years, a time when they tend to have fewer options for creating additional wealth. Mutual of America Financial Group is helping women proactively take charge of their financial destiny with information and insights that can help you save and invest smartly for retirement, on your own terms.

WE’RE HERE FOR WHAT’S NEXT

Pay bills with auto-pay to avoid late fees

Avoid ATM fees by using your bank’s ATM

Make coffee at home

Prepare meals at home

THE LIFE SPAN CHALLENGE

Women, on average, live longer than men

While, of course, greater longevity for everyone is to be celebrated, women’s statistical advantage means you may be spending more years in retirement, perhaps without a spouse or partner. You may have more years in which your retirement savings will need to support you. Also, consider the impact of unexpected expenses and inflation, which will make the future more expensive. In addition, you’ll also probably need a different standard of healthcare, perhaps long-term care. Medicare.gov notes that Medicare generally doesn’t cover long-term care stays in a nursing home, even though it does cover hospital care, doctor services and medical supplies needed for nursing home stays. This increased impact on your retirement savings presents a compelling case for saving as much as you can as early as you can.

Women are usually the ones who pause their careers

Women are often the family members who leave the workforce to care for children, or sick and/or aging relatives. These interruptions, coupled with the other long-term savings challenges women face, have an outsized impact on their ability to save for retirement. In addition, income shortfalls caused by extended leave may create the temptation to take money from existing retirement savings.

WOMEN AND RETIREMENT

Smart ways women can more effectively prepare for their financial future

The changing nature of retirement—and how people save and invest for it—requires different ways of thinking and planning than before. This shift is particularly true for women who may wish to chart a path to greater financial independence that is far beyond what may have been possible in the past.

As women in the middle and late 20th century were redefining their workplaces and career potential, the concept of retirement was also evolving. Advancements in medicine, technology and lifestyles have contributed to longer life spans for retirees and provided more ways for them to stay active in their later years. But even as retirement itself becomes more expansive, many women face challenges in being able to find their own path to enjoying a comfortable and fulfilling financial future. Let’s look at a few of the major ones…

Women face unique challenges in saving for retirement

A RETIREMENT OF OUR OWN

Wherever you are on your journey toward retirement, Mutual of America representatives can discuss your goals, time horizon and other factors that can affect how well you save and invest for the future.

Women today can expect to live into their late 70s, and for women entering the workforce within the next two decades, their life span is likely to be even longer.

Source: U.S. Department of Health and Human Services. National Vital Statistics Reports, No.23. National Center for Health Statistics. August 31, 2022. https://www.cdc.gov/nchs/data/vsrr/ vsrr023.pdf

AVERAGE LIFE EXPECTANCY

YEARS

73.2

79.1

THE EARNINGS CHALLENGE

Women, on average, earn less than men

While today, large numbers of employers have committed to gender pay parity, over the course of a woman’s career, she may have faced pay inequity. It’s a difference that could have significant implications for the retirement savings she’s able to accumulate.

According to the Bureau of Labor Statistics, women’s median earnings are 80.4% of men’s, assuming a base salary of $55,432/year for men and $44,564/year for women. That means, over 10 years, a woman would earn roughly $108,680 less than a man. Stretch that out over a 30-year career and that’s $326,040. Factor in the opportunity cost of lost investment potential and the number becomes even more staggering. Of course, earning less money means having less money available to save for retirement—which makes managing it well even more important. However, too many women put off retirement saving entirely, not because they don’t want to, but out of necessity. In addition, many single-parent families with children under the age of 18 are headed by women. For these households, meeting their immediate financial needs often takes precedence over saving for retirement.

Source: U.S. Department of Labor, Bureau of Labor Statistics. Usual Weekly Earnings of Wage and Salary Workers First Quarter 2020. April 15, 2020.

WOMEN’S MEDIAN EARNINGS ARE 80.4% OF MEN’S

WOMEN

MEN

$55,432/year

$44,564/year

At that rate, over 10 years, a woman would earn $108,680 less than a man. Over 30 years, she would earn $326,040 less.

THE CAREER INTERRUPTION CHALLENGE

THE RISK CHALLENGE

Women tend to invest more conservatively than men

A study by the U.S. Department of Labor confirmed what many financial professionals have seen among their clients: women tend to be more conservative investors.* For most individuals, the fear of loss is stronger than the potential for gain.

Of course, conservative investment options serve an important purpose in overall investing, especially in times of high financial market volatility, or when the goal of preserving capital is more important than capital appreciation. However, over the long term, it’s unlikely that a portfolio heavily invested in lower-risk options such as money market funds will keep pace with inflation. Such a portfolio could leave you underfunded as retirement draws near. Many financial experts believe that a diversified portfolio offers greater potential to provide the kind of growth and income you’ll likely need to fund the retirement you want and deserve. (However, diversification does not guarantee a profit or protect against a loss.)

A CONSERVATIVE PORTFOLIO IS MORE LIKELY, OVER THE LONG TERM, TO GENERATE LOWER RETURNS

Aggressive

Moderately Aggressive

Moderate

Moderately Conservative

Conservative

Money Market Funds (Cash and Cash Equivalents)

Bonds (Fixed Income)

Stocks (Equity)

The charts above are for illustrative purposes only and do not represent any investment fund or strategy.

*Source: U.S. Department of Labor, Employee Benefits Security Administration. Women And Retirement Savings. September 2017.

Will you stay in your present home, move to a smaller (or larger) dwelling or move to a community with a lower cost of living?

WHERE WILL YOU LIVE?

WHAT ACTIVITIES DO YOU WANT TO PURSUE?

WHAT OPTIONS ARE NEEDED AROUND HEALTHCARE AND INSURANCE?

WHERE WILL YOU LIVE?

Think about the things you like to do and hobbies you like to pursue. What arrangements will maximize your enjoyment of these activities?

WHAT ACTIVITIES DO YOU WANT TO PURSUE?

WHAT OPTIONS ARE NEEDED AROUND HEALTHCARE AND INSURANCE?

Of course, no one can predict the future, but do you have any present-day health considerations that could affect your life in retirement and the kind of medical care and coverage you’ll need?

HOW MUCH DO YOU NEED TO LIVE THE LIFE YOU WANT?

WHO WILL YOUR SAVINGS PASS ON TO?

In looking to build retirement savings, it’s important to have a clear plan and goals for the future. The idea of retirement is often described in vague, general terms. You may have a better chance for a successful retirement if you take the time to set concrete goals and crystallize your thinking around what you really want to do in your post-working life—even if that’s just enjoying not having to work. Ask yourself these key questions:

It’s time to start thinking about your life in retirement

WHAT OPTIONS ARE NEEDED AROUND HEALTHCARE AND INSURANCE?

HOW MUCH DO YOU NEED TO LIVE THE LIFE YOU WANT?

WHO WILL YOUR SAVINGS PASS ON TO?

HOW MUCH DO YOU NEED TO LIVE THE LIFE YOU WANT?

WHO WILL YOUR SAVINGS PASS ON TO?

WHERE WILL YOU LIVE?

WHAT ACTIVITIES DO YOU WANT TO PURSUE?

HOW MUCH DO YOU NEED TO LIVE THE LIFE YOU WANT?

There are free, easy-to-use online tools and calculators to help you determine the kind of income you’ll need to support your retirement life. You can find many of these financial and retirement planning tools and calculators at mutualofamerica.com.* And remember, you’ll likely need income for perhaps 30 years or more. The number you come up with may seem daunting at first, but there are many ways to make saving and investing for retirement more effective.

WHO WILL YOUR SAVINGS PASS ON TO?

WHERE WILL YOU LIVE?

WHAT ACTIVITIES DO YOU WANT TO PURSUE?

WHAT OPTIONS ARE NEEDED AROUND HEALTHCARE AND INSURANCE?

WHO WILL YOUR SAVINGS PASS ON TO?

There’s no better time than now to make sure all your accounts have the correct beneficiary information. That way, you can be sure your assets will pass on in the way you intend.

WHERE WILL YOU LIVE?

WHAT ACTIVITIES DO YOU WANT TO PURSUE?

WHAT OPTIONS ARE NEEDED AROUND HEALTHCARE AND INSURANCE?

HOW MUCH DO YOU NEED TO LIVE THE LIFE YOU WANT?

Employer-sponsored retirement plans Typically, you can leave these funds in the plan, taking distributions as needed.

Generating retirement income

Your capacity to generate retirement income—and how you choose to receive it—will have a significant impact on your lifestyle. Most women will have four main sources of independent income in retirement:

Where the money comes from

Personal savings These include funds held in savings, checking, money market accounts and IRAs.

Social Security You can begin receiving payments at age 62, but you’ll be able to claim much more if you can wait until age 70.

Employment You could decide to continue working part-time or take on a new profession.

Making the most of your employer-sponsored retirement plan

One of the best ways to save more for the future is through your employer’s retirement plan. Salary deferrals are deducted from each paycheck—before taxes (“Traditional”) or after taxes (designated “Roth”), depending on plan rules and your choice of options. Either way, these favorable tax treatments give your contributions even greater growth potential. You should consult your personal tax adviser or attorney for matters involving taxation and tax planning.

How salary deferrals work If you make traditional contributions, pretax contributions are taken from your salary before federal and state taxes are deducted. Any earnings on these contributions grow tax deferred until you withdraw them. That’s usually at retirement, when many people are in a lower tax bracket. (Generally, withdrawals are subject to income tax at your ordinary income tax rate at the time of withdrawal, and if made prior to age 59½, a 10% federal tax penalty.) Designated Roth contributions are taken from your salary after federal and state taxes are deducted. However, contributions and earnings in Roth accounts grow tax-free, as do withdrawals, if taken after age 59½ and you have held the account for five years or more. Maximize your opportunities to save and invest For either type of retirement plan account, if you are age 50 or older during the calendar year, you can make additional “catch-up” contributions that will allow you to save even more. Consider contributing the maximum allowed to your workplace retirement plan, and try to contribute enough to get the full employer match if one is offered.

of workers feel confident they will have enough money to live comfortably in retirement.

Social Security + Savings and Investments + Employment Income + Retirement Plan Assets =

YOur Available RETIREMENT FUNDS

73%

Source: 2022 Retirement Confidence Survey, EBRI/Greenwald & Associates.

Over the course of your career, you may accumulate assets in different retirement plans of previous employers. It may make sense to consolidate assets into one retirement account for easier management. Before rolling over funds, you should review the accounts you have to determine the fees and expenses you currently pay and whether there are any surrender charges that may result and to ensure that it is in your best interest to consolidate your funds.

CONSIDER CONSOLIDATING YOUR ASSETS.

Save as much as you can, as soon as you can

The challenges of retirement in general—and for women in particular—mean that focusing on retirement savings is vitally important. Of course, it’s hard to save money, period. There’s always some crisis or temptation seeking to lay claim to your paycheck. But the sooner you start saving, and the more you can save, the better your chances for achieving the financial future you want. Consider saving at least 10% to 15% of your income for retirement.

You may be able to save more of your salary by making simple, everyday lifestyle changes. Here are some tips to help you save more and keep your retirement goals on track.

TRY TO SAVE A LITTLE BIT EVERY DAY

Bring your lunch to work

PLAN FOR AN AVERAGE OF 80% OF YOUR PRERETIREMENT INCOME TO MAINTAIN YOUR CURRENT STANDARD OF LIVING

Your current gross income x 80% x years in retirement =

approximate amount you will need to fund your retirement

Calculation is a general approximation for illustrative purposes only. It does not take into account inflation, investment returns, etc., if any, over time. Source: U.S. Department of Labor, Employee Benefits Security Administration. Savings Fitness Worksheets: Worksheet 4—Retirement Saving.

This material is not intended to give legal, tax or investment advice; and you should not rely on it for legal, tax or investment advice. You should consult your legal, tax or investment adviser regarding retirement plan rules and regulations.

*Information and interactive calculators are made available as self-help tools for independent use and are not intended to provide investment advice. Mutual of America cannot and does not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes only. We encourage individuals to seek personalized advice from qualified professionals regarding all personal finance issues.

Pay bills with auto-pay to avoid late fees

Avoid ATM fees by using your bank’s ATM

Make coffee at home

Bring your lunch to work

Prepare meals at home

Save as much as you can, as soon as you can

TRY TO SAVE A LITTLE BIT EVERY DAY

You may be able to save more of your salary by making simple, everyday lifestyle changes. Here are some tips to help you save more and keep your retirement goals on track.

PLAN FOR AN AVERAGE OF 80% OF YOUR PRERETIREMENT INCOME TO MAINTAIN YOUR CURRENT STANDARD OF LIVING

Your current gross income x 80% x years in retirement =

approximate amount you will need to fund your retirement

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Today’s workers could spend 30 or more years enjoying their retirement. How they save and invest to prepare for those years takes on added importance given their longer life expectancy and more active lifestyles. Meeting this challenge requires thinking and capabilities that go beyond ordinary. We believe that’s what you’ll find in our investment services, specialists and solutions. Their purpose is to help you offer a more powerful, more valuable retirement plan—one that gives your employees more potential to create the kind of tomorrow they want most.

Understanding your options

Call Now

866.954.4321

Download the Brochure

Securities offered by Mutual of America Securities LLC, Member FINRA/SIPC. Insurance products are issued by Mutual of America Life Insurance Company.

320 Park Avenue, New York, NY 10022-6839 mutualofamerica.com • 800.468.3785 •

MEN

WOMAN

Source: Bureau of Labor Statistics, U.S. Department of Labor. Usual Weekly Earnings of Wage and Salary Workers First Quarter 2020. April 15, 2020.

At that rate, over ten years, a man would earn $108,680 more than a woman. Over 30 years, a man would earn $326,040 more than a woman.

$55,432/year

$44,564/year