Helpful Retirement Strategies for Women
Article written by Scott M Kahan in Hamlet Living - March 2022 Magazine
Preparing for retirement can look a little different for women than for men. Although stereotypes are changing, women are still more likely to serve as caretakers than men are, meaning they accumulate less income and benefits due to their time absent
from the workforce.
Research shows that 39% of women took a significant amount of time off work to care for loved ones, compared to 24% of men. Working women also tend to put less money aside for retirement, saving just 7% of their paychecks on average, while men save closer to 10%.
These numbers may seem overwhelming, but you do not have to be a statistic. With a bit of foresight, you can start taking steps now, which may help you in the long run.
Here are three steps to consider that may put you ahead of the curve.
- Talk about money. Nowadays, discussing money is less taboo than in the past, and it is crucial to taking control of your financial future. If you are single, consider writing down your retirement goals and keep them readily accessible. If you have a partner, make sure you are both on the same page regarding your retirement goals. The more comfortably you can talk about your future, the more confident you can make important decisions when they come up.
- Be proactive about your retirement. Do you have clear, defined goals for what you want your retirement to look like? Do you know where your retirement accounts stand today? Being proactive with your retirement accounts allows you to create a goal-oriented roadmap. It may also help you adapt when necessary and continue your journey regardless of relationship status or market fluctuations.
- Make room for your future in your budget. Adjust your budget to allow for retirement savings, just as you would for a new home or your dream vacation. Like any of your other financial goals, you may find it beneficial to review your retirement goals regularly to make sure you are on track. Retirement may look a little different for women, but with the right strategies – and support – you’ll be able to live the retirement you have always dreamed about.