Women face special challenges when planning for retirement. Because their careers are often interrupted to care for children or elderly parents and because women generally live longer than men, their retirement plan balances and benefits are often lower and must be stretched over more years. Here are four tips that should assist them in meeting their retirement needs. –curtis wright
Begin Saving Now
To maximize the chances of achieving a financially secure retirement, start with a realistic assessment of how much you’ll need to save. If the figure is not substantial, don’t be discouraged. The most important thing is to begin saving now. Although it’s never too late to save for retirement, the sooner you start, the more time your investments have to grow.
Save As Much As You Can — You Have Many Options
If your employer offers a retirement savings plan, such as a 401(k) or a 403(b), join it as soon as possible and contribute as much as you can. It’s easy to save because your contributions are deducted directly from your pay, and some employers will even match a portion of what you contribute. If your employer offers a pension plan, find out how many years you’ll need to work for the company before you’re vested in, or own, your pension benefits.
Most employer-sponsored plans allow you to choose from several investment options, typically mutual funds. If you have many years to invest or you’re trying to make up for lost time, give special consideration to growth-oriented investments such as stocks and stock funds.
Save For Retirement No Matter What
Even if you’re staying at home to raise your family, you can — and should — continue to save for retirement. If you’re married and file your income taxes jointly, and otherwise qualify, you may open and contribute to a traditional or Roth IRA as long as your spouse has enough earned income to cover the contributions.
Plan for Income In Retirement
A realistic concern is that many women will live into their 90s. This means that women should generally plan for a long retirement that will last at least 20 to 30 years. According to recent statistics, 42 percent of older women are widowed, 11 percent are divorced, and approximately half of all women age 75 and older live alone. For married women, the loss of a spouse can mean a significant decrease in retirement income from Social Security or pensions.
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