Helping Women Overcome Common Retirement Challenges
Did you know, women face different challenges than men when it comes to retirement? From differences in earnings to a longer life expectancy, women have a different set of circumstances when it comes to planning for retirement.
As a woman, if you’re starting to think about your retirement years or have already taken the retirement plunge, you might want to consider these challenges and how to work through them in order to achieve your retirement goals.
Less Income and Savings
While much has been done to decrease the gender pay gap, women still earn less than men, and therefore have less income to save over time. This means that women have more of a need to continue working in retirement, whether it’s part-time or continuing their career work. Extra income in retirement can help pay for unexpected expenses, or pass down more wealth to heirs.
Longer Life Expectancy
You might not realize it, but as a woman, you have a longer life expectancy than men. While that might sound great, it also means that you’ll likely spend more years in retirement, and therefore, need more savings to get you through those years.
A longer life can also mean more healthcare-related costs, which can add up quickly over time. It also means that if you have a male spouse, you are likely to outlive them. As a result, it’s a good idea to go over your healthcare plan, along with you and your partner’s will and estate planning.
Lower Levels of Financial Literacy
Broadly speaking, men and women have different levels of financial literacy. This is often true in marriages where the man has handled financial matters for decades, and even goes back to the school system where men are more likely to study business and finance than women.
To navigate your retirement, you’ll need to understand your future budget, investment strategy, and other important matters. If you don’t have any experience with financial education, don’t worry. In today’s world there are so many ways to learn, from online videos to remote learning classes, and even talking to a financial planner. Start increasing your financial literacy today so that you can take your financial life into your own hands.
Address Your Challenges
These factors might make it more difficult for you as a woman to plan for your future. However, there are several things you can do to prepare for retirement:
- Get educated: Bone up on your financial literacy and investment strategies.
- Save early: The earlier you begin to start saving, the better.
- Maximize benefits: Take advantage of employer-sponsored benefits, and Social Security.
- Understand taxes: Know how to minimize your tax bill while making smart planning decisions.
Consider Getting Support
Whether you are working on your retirement planning for the first time, or have been thinking about this for years, you could likely use some help. We’re here to help you better understand your unique challenges and how to address them. This includes how to manage your taxes, philanthropic giving, and legacy planning. Contact us today to connect with an advisor.