5 Facts That Threaten Women’s Retirement Income and 4 Ways to Overcome Them
In this day and age where women are advancing in careers and business ownership, and experiencing success their predecessors only dreamed of, they still lag behind men in one key area: saving and planning for a financially secure retirement.
Women are at risk of experiencing a financial shortfall in retirement. In other words, they risk outliving their money.
The five primary economic and social factors that threaten the financial security of women in retirement are:
- Women’s lifetime income is less than men’s due to the fact that they take time out of the workforce to care for loved ones. Which means they don’t get to enjoy the financial increases over the life of their careers that men do.
- Women tend to work part time – or not at all – in order to stay home with the kids.
- Therefore they contribute less to retirement savings and earn less Social Security benefits, which translates into lower retirement income.
- Statistically, women outlive men, which means they need more money to live.
- Because women live longer, their cost for healthcare (i.e. long term care) is more than men’s.
As pervading as these factors are to women’s financial security, there are ways to mitigate them.
Here are four ways women can improve their financial security for retirement.
- Start saving as much as you can for retirement. Take advantage of workplace retirement plans. Visit your HR department and arrange to begin payroll deductions. If you already contribute, increase the amount.
- Start saving after tax dollars as well. This way you can create tax-diversity in your retirement income. The last thing you want is to have all of your income be at the mercy of future tax rates.
- Take a look at your monthly expenditures to determine where you can find more money to save. Make a decision to cut way down on expenses today in order to save more for your future. Your future self will thank you profusely.
- Get educated about retirement planning for women. Learn about all the various ways you can save for retirement and make your retirement savings last longer. Even if your husband “handles all the finances.” Like anything else, two heads are better than one. If you’re a single gal, find a financial professional you feel comfortable with and let them help you create a plan.
Most Read IRIS Articles of the Week: July 17-21
Here’s a look at the Top 11 Most Viewed Articles of the Week on IRIS.xyz, July 17-21 2017
Click the headline to read the full article. Enjoy!
The fee debate raging across mutual funds has long since seeped into hedge funds. Certainly the direction of travel on hedge fund fees was already downward, as strong industry competition and underwhelming performance have taken their toll. — Yazann Romahi
Equity markets continued their strong run in the second quarter of 2017, thanks to the global economy hitting its stride and registering the fastest level of growth in six years. For the first time since 2011, the U.S. is no longer the only shining star as economic momentum picked up across the globe. — Sonu Varghese
What’s powerful about Smart Beta is that it allows investors to target very specific factors to create an ideal portfolio based on a given asset allocation. — Salvatore Bruno
At almost every financial and insurance conference we’ve attended in the past year, sessions to discuss the Department of Labor (DOL) Fiduciary Rule have been among the most popular. — Merriah Harkins
In researching high growth professional services firms we made an eye-opening discovery. Those firms that did systematic business research on their target client group grew faster and were more profitable. — Michael Kay
We live in a noisy world where wisdom is hard to discern. Here are a dozen financial truths honed from more than three decades of observation. — James E. Wilson
If you keep getting the same actions or responses from your interactions, it is most likely you that is the problem. Stop blaming others for your issues. — Matthew Halloran
Being influential through your verbal and non-verbal communication Monday to Monday® requires deliberate practice. You can’t read how-to’s in a book or rely on your title and comfort level to be influential. — Stacey Hanke
We all search for the least chaotic place to work and think. However, your location could hurt your productivity. Here’s why…. — Jennifer Goldman
You’re supposed to have a single burning passion, right? To feel this incredible drive to do this thing that you love. — Alli Polin
Real innovation, and real disruption, will be concepts and methods which “do new things that make the old things obsolete”. — Tony Vidler
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