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.
How to Introduce and Position Yourself the Right Way
Introducing yourself – more to getting it right than you think!
What do you say when someone asks you “so what do you do?”
You might say, “I’m a financial advisor”. Or “I’m an investment advisor”. If you’re a top advisor, you might be compelled to say “I’m Vice President and Portfolio Manager”. Or even “I’m a CFA”.
Well put all of those away if you’re introducing yourself to a woman you might want as a client. None of the above will impress her – she might even “run for the door” thinking you’re going to try to “sell” her something.
Your goal is have her say “tell me more about that”.
So what do you say?
Here are 4 quick tips:
- Make it about your clients
- Make it about outcomes
- Make it interesting
- Make it fun
How about something like this: “I help people have their cake and eat it too”. Doesn’t that beg the question “what does that mean” or “how do you do that”.
Okay maybe that’s a bit over the edge but it’s important you make it about the people you help and not about what you do to help people get there.
I help <type of people you serve”> <achieve this>. Something like:
- I help retirees create a sustainable income.
- I help women understand money on their terms.
- I help young couples get a good start towards financial security.
Now you try it! Send us your best one.
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