Women have a longer retirement than men, so start now to plan for it.
All things considered, the average woman has a longer retirement than the average man. It’s fairly well documented that women tend to live longer. Couple that with the trend of women leaving the workforce at a younger age, and you’ve got more retirement income years to think about than you might have realized.
A longer retirement isn’t troubling on its own. There’s more time to pursue things that might have put off. What makes it risky is that many women aren’t financially prepared for the years that lie ahead.
Women don’t save as much money as men, and they don’t invest as much or as aggressively. What’s more troubling is that many women don’t retire early by choice. Many become caregivers for an aging spouse or parent, and many others simply lose their jobs, according to Forbes.
Retirement planning isn’t solely the domain of men or couples. Women need to approach it vigorously, too. To get on the right track, here are 6 tips that can make all of those encore years more secure.
That rainy day is coming faster than you think.
#1: Don’t Put off Saving for Retirement
No matter how young you are, it’s never too soon to start planning for retirement. According to a Wells Fargo study, only 9 percent of women aged 22 to 33 years are saving 10 percent or more of their income. In contrast, more than a quarter of men in the same age group save at the same rate.
#2: Save, Regardless of Your Earnings
In the Wells Fargo study, men earned more money, which is not surprising. But waiting for the right income level can shave years off your retirement savings potential. No matter what you earn, and no matter how little you can save, begin now. You can always increase the percentage when you earn more.
#3: Educate Yourself About Retirement Planning
The more you know, the better your chances of getting on track and staying there. According to CNBC, women who learn about finances tend to put that knowledge to use and turn their situation around.
#4: Get out of Debt and Stay There
Debt is a huge burden that many women carry. Student loan debt is a big one, especially with the poor job market and lower pay. But the faster you can pay off debt, the sooner you can direct that money toward retirement savings.
A financial planner could be your new best friend.
#5: Think About Hiring a Financial Planner
Your financial situation might not support hiring a financial planner, but you never know until you try. Some charge enormous fees to enormously wealthy clients. But they aren’t the only ones on the block. You might not have as much to work with as your male counterparts, but a financial planner can help it grow with sound investments.
#6: Keep Working as Long as You Can
The longer you can put off retirement, the more money you’ll have to save. You’ll also qualify for full Social Security benefits if you wait. At age 62, you’ll qualify for 70 percent of the monthly benefit. If you wait until 65, you’ll get 86.7 percent. But if you wait just a little longer, until your 67th birthday, you’ll receive the full monthly benefit.
There are a lot of retirement years to plan for. And unlike men, women tend to reach retirement without as solid a plan. You can change all of that by starting today.
New Retirement can help you evaluate where you are and what you will need to retire comfortably. Our retirement calculator gives you a snapshot of what to expect if you stay on your current course.
Your savings is the most important thing you can do to secure the future. No matter where you work, how much you earn, or how many years you have left until retirement, you can take control and chart a better course than the one you might be on.
