Every generation has one, and in the 1980s, Jake Ryan from Sixteen Candles was that guy. Good looks, athletic, rich, and a heart of gold. The epitome of the ideal boyfriend. Of course, the Porsche was the icing on the cake.
When we left Samantha and Jake, gas was $1.13 a gallon and hair spray and sweater vest sales were at all time highs. Life was wonderful and Sixteen Candles made us believe that it would stay that way. Find the perfect guy, fall in love, go to prom, and then skip ahead 10 or 15 years and you’re married with kids. Fast forward even further and you’re holding hands dancing to Thompson Twins in your twilight years. The fairy tale was possible.
“He’s supposed to be my ideal”.
However, sometimes life deals another set of cards, a much more unpredictable one. More of Long Duk Dong than Jake Ryan. As Sixteen Candles approaches its 35th anniversary, let’s consider whether Sixty-Five Candles would have that same happy ending.
Let’s start with the facts. Statistically speaking, if Jake and Samantha had gotten married, there is a 55% chance they would have been divorced within 10 years.
“Ohhh, sexy girlfriend!… Bonzai!”
High school sweethearts don’t have good track records unfortunately. But perhaps Jake and Samantha were one of those storybook couples that stayed together, had beautiful children, a Tesla (probably), a Labradoodle (definitely) and approaching retirement in beautiful Illinois in their dog-hair free house. Maybe.
Samantha Baker would be turning 50 this year. That would make her older than her mother in the film. She may also have a daughter whose birthday she has forgotten and a wise-cracking son.
But whether or not Jake and Samantha are still together, Samantha needs to start getting serious about that fairy-tale ending if she hasn’t already.
Why Samantha’s Retirement is Different Than Jake’s
When it comes to retirement and happily ever after, women have different considerations than men, including;
- Spending more time in retirement than men.
- Generally earning less than men during their working years.
- Having unique variables to consider, including being a caregiver and most importantly, their confidence in investing.
Longevity
Women live longer than men and are typically younger in relationships, which means they spend on average 5-7 years longer in retirement than their partners, typically alone. Once she reaches 65, Samantha could expect to spend 15-25 years in retirement.
“You gave me a birth control pill? Do you have any idea what that will do to a guy my age?”
Earnings
Women, on average, earn 75% of what men earn, which results in an average lifetime earnings differential of $250,000. This impacts their retirement savings, as well as their pension amounts. The World Economic Forum’s 2017 Gender Gap study claimed women need to save an additional 26% vs. men to compensate for the gap in their pension earnings.
Other Variables
30% of women also end up becoming caregivers to close family members (eg. Samantha’s mom, dad or grandmother) or even a family friend. This has an emotional impact and may also come with a financial burden she may not be prepared for.
“It’s a very important dance… uh.. we’re being graded on it, for Gym.”
So How Much Would Samantha Need?
Samantha’s main objective would be to ensure she has enough money to cover her lifestyle in retirement, as well as potentially have some left over to pass on to Jake Jr. and or Ashley/Jessica (statistically these were the most popular girl’s names in Illinois in the 90s).
Government programs provide anywhere from $500 – $1600/month, if that, plus she may be contributing to a company pension that can supplement her income. Understanding what she needs to save outside of these amounts is critical.
There are different schools of thought on how much you actually need in retirement. Some experts say $750,000, others say 70% of your working income, while others claim you need very little given many people don’t spend much in retirement. If her plans include traveling or other expensive hobbies, or any unplanned emergencies come up (eg. health-related) she will need to prepared.
“Happy Birthday, Samantha. Make a wish.”
3 Steps Samantha Should Take to Protect Her Happy Ending
- Take control of her financial future
- Learn more about investing or find a good financial advisor
- Explore her retirement, pension and investment savings now
The majority of women prefer to leave investing to their partners, as they believe they know more about financial matters. This is a mistake. At some point 80-90% of women will have sole responsibility of their finances. Taking control can have a huge impact on your financial and emotional well being.
By the year 2030, women will control 2/3 of US wealth. Hopefully Samantha and Jake will be living their happy ending. Will you be ready?