Women and men approach retirement planning in various ways. Despite changing perceptions, women are still more likely than males to serve as carers, which means they may earn less money and receive fewer benefits due to their time away from the job. According to research, 31% of women are currently or have been caretakers at some point in their lives. Working women also have a lower rate of saving for retirement. Women contribute 30% less to their retirement accounts than males, according to one study.1,2
These figures may be daunting, but you don't have to become a statistic. You may start taking efforts today that will help you in the long run if you have a little insight. Here are three actions to think about that could help you get ahead of the game.
Be open to talking about money
Money is less taboo nowadays than it was in the past, and it's critical to take charge of your financial future. If you're single, write down your retirement goals and store them wherever you can see them. If you have a partner, be sure you're on the same page when it comes to your retirement plans. The more at ease you are discussing your future plans, the more confident you will be in making significant decisions when the time comes.
Make plans for your retirement now
Do you have specific plans for how you want to spend your retirement? Do you know how much money you have in your retirement accounts now? You may construct a goal-oriented roadmap by being proactive with your retirement accounts. It may also encourage you in adapting as needed and continue on your journey independent of factors such as relationship status or market volatility.
Make spare money for your future
Just as you would for a new home or a dream vacation, adjust your budget to account for retirement funds. You should check your retirement goals on a regular basis, just like any other financial goal, to make sure you're on track.
Women's retirements may differ from men's, but with the appropriate techniques – and assistance – you may have the retirement you've always wanted.
The views expressed in this material are for informational purposes only and are not intended to provide particular advice or recommendations to any individual. Consult your financial advisor before making any investments to decide which ones are right for you. All performance data is historical and does not guarantee future outcomes. All indices are unmanaged, and therefore cannot be directly invested in.
The information provided is not meant to replace unique, individual tax planning or legal counsel. We recommend that you seek the advice of skilled tax or legal counsel. All data have come from credible sources.
1. Transamerica.com, 2021