Six Women Talk About Planning for Retirement

Surviving Disaster

Sonja and Tom Redmond

Retirement plans for Alaskans Sonja and Tom Redmond changed drastically after the Exxon Valdez oil spill in 1989.

Tom's business as a commercial fisherman went belly-up, and they filed for bankruptcy in 1991. Tom, now 55, went to work as a warehouse manager; he is now out on disability. Sonja closed her upholstery shop after 27 years, enrolled in law school and graduated two years ago at age 54.

She set up an office near their home south of Anchorage and has her fingers crossed that her new practice will allow her to pay off her huge student loans and produce the financial security they seek. "The American dream of retirement with dignity—that's not going to happen for us," she says. "Living in a box under a bridge—that's not going to happen either. We will survive."

Dipping Into Savings

Aurora Betty Valles

In 1979, at age 54, Aurora Betty Valles left her job as a bilingual medical interpreter in Los Angeles, remarried, and enrolled in college, eventually earning an associate's of arts degree in business administration. A few years later, her husband, a dean at East L.A. Community College, retired with a full pension and medical benefits. Life was good. But the rising costs of utilities and medical prescriptions, as well as frail health—an angioplasty for her, a mild stroke for him—have forced the Valleses to start dipping into their savings.

"I really thought it was going to be our golden years," says Valles. Now, she adds, by next year they might need to sell their home. She no longer indulges in visits to museums, plays, or concerts, despite occasional financial help from her youngest daughter.

Nevertheless, Valles, now 79, is optimistic that she and her husband will find a way to continue living independently. "I have great faith in the Lord," says this Mexican American mother of four who thrives on community work. "It has become quite difficult now for us, but we do the best we can."

Auto-Saver

Jugnu Garfield

For a woman whose husband made all the financial decisions during their 30-year marriage, Jugnu Garfield, 57, of Long Island, N.Y., has done quite well in preparing for her retirement. She had no grand financial strategy, she says, just an employer that offers good benefits.

Despite her modest salary as a school secretary for the last 18 years, Garfield, who divorced several years ago, has managed to build a secure retirement by contributing steadily to the pension and annuity plans offered by the New York City Department of Education.

"I'm not interested in money or finances," says Garfield. "If I had to plan for myself, I wouldn't be good at it. These are automatic deductions that come out of my salary, so it's good for me."

Far From Impulsive

Marlene Montesinos

Marlene Montesinos is not planning to retire anytime soon. In fact, the 55-year-old Houston attorney and businesswoman is pursuing a major career move: she is running for the Constitutional Assembly of her native Ecuador, where she hopes to foster closer political and commercial ties between Ecuador and the United States.

Her enthusiasm is far from impulsive, however. Analytical by training and inclination, Montesinos, a divorced mother of three children, obtained a law degree, stayed home for a few years while her children were small, then went back for additional training in her specialty: conflict resolution and business law.

She emphasizes the importance of planning ahead in securing financial freedom when she's older, whether she retires in the United States or abroad. "I have several options, and I have not closed the door to any just yet," she says.

To that end, she systematically puts money into [401(k)] and Roth IRA accounts and owns her own home and other properties. "No one is ever comfortable with the amount of savings they have," she says, laughing. The key is flexibility. "There are no challenges that cannot be met."

Late Starter

Elizabeth Cavette

At 61, Elizabeth Cavette worries about outlasting her retirement funds.

Eight years ago, chronic pain from arthritis and carpal tunnel syndrome drove her to retire early on disability from her job in customer service for Ameritech Corp. She had only been saving for retirement since her mid-40s.

"I wish I had participated in the [401(k)] savings plan sooner," says Cavette, who's been divorced for 26 years.

She plans to sell her $50,000 home in Flint, Mich., and downsize. Her message to others: "Save and leave it there so you can feel secure when you retire. Saving and planning are key."

Lesson Learned

Betsy Glick

Not many people begin saving for retirement right out of college, but Betsy Glick did. Now, at 43, single and living in Vienna, Va., she's decades away from retiring from her public affairs job and has already amassed a generous sum from a 401(k), a 403 (b), an IRA and a pension. "I've always put in the maximum allowable contribution" to employer-sponsored plans, she says.

"I learned a long time ago how important saving is," says Glick, whose mother became the family's sole provider more than 20 years ago when her husband died. "She reassured all of us ... that we were going to be OK because she and my dad had prepared for the unexpected," Glick says. "That's a lesson that sticks with me."