Posted by James Financial Services Inc

Major Retirement Concerns for Women

Major Retirement Concerns for Women

Retirement is a major headache for American women. This is because they always have a hard time deciding when to retire and the uncertainty that goes with it. At a time when women live longer, earn and save less money than men, it is only natural that women worry about life after retirement. In this write up, we are going to examine some of the biggest retirement worries for women.

The average lifespan of a woman is 8% longer than that of a man, which means that proper retirement planning and a savings strategy are essential. Besides economics and financial planning, the role of women as caregivers in society is another retirement issue, as many women end up caring for older parents or providing for an adult child. This tends to affect their ability to earn good salaries and to plan and save for retirement.

Even if retirement for you is going to happen in several years from now, it is never too early to have a good plan on how your retirement will look like. Since two in five women are expected to live more than 90 years old, careful planning for women's retirement is essential. 

Here are some disturbing statistics from the American Center for Disease Control. United States of America:

    •    At birth, the life expectancy of a woman is 81.3 years, while a man has a life expectancy of 76 years.

    •    On average, the 65-year-old woman will live to 85 years, while the average man of 65-year-old will live to 83 years

    •    The average 75-year-old woman will live to 88, while the average 75-year-old man will live 86

The top three threats to retirement for women

When planning your pension, you should be aware of the three main threats that can prevent you from saving enough or being penniless during your retirement. Those are:

    •    Longer Life Span: as mentioned above, as women, you are more likely to live longer than men. Because this is completely out of your control, all you can do is save enough to make sure you don't run out of money if you live longer than expected. You can also help combat this threat by working with an experienced and trustworthy financial advisor who can help create realistic retirement savings and distribution plan that shows how much you need to save (monthly, quarterly or yearly) to reach a certain level of retirement expenses.

    •    Care for older parents: Women have traditionally cared for older parents and, even though older women are employed at higher rates than previous generations, this has not changed. A woman who is a primary or even part-time caregiver for her parents must give up work or reduce her hours and spend money her money to care for her parents, which would otherwise be retirement-oriented.

    •    Support for adult children: In an economy where many young adults are underemployed or unemployed, many parents find children returning home to live while looking for a job, or applying for a graduate school. The resulting emotional and financial disruption can delay retirement savings plans and lead to unexpected expenses.

How to Prepare for Retirement

Although retirement may seem a long way in the future, it is approaching every year. To create the retirement of your dreams and ensure proper preparation, there are several steps to follow, including:

    •    Start saving: set a goal to save 10 to 15% of your income each year.

    •    Debt reduction: debt-free retirement is a beautiful gift. If you have credit card debt, start reducing that debt and move on to other types of debt. When you pay off your debts, you can free up money to invest wisely in the future, save wisely, and plan for the future.

    •    Decide when to use social security: The decision when to use social security is essential. By delaying the use of social security benefits by a few years, the final monthly benefit will be more considerable. If you plan to continue working until the mid-60s and later and can wait, it makes sense to delay your benefits.

    •    Hire a financial planner: even the most educated financial planner can use an objective financial planner to develop savings, investment, and global pensions plan for the future.

    •    Make a list of objectives: With the objectives to be achieved, it is simpler to invest in savings and investment plan to support them. Your goals can always be changed and adapted to different circumstances, but setting goals makes progress more comfortable.

    •    Make the most of retirement plans: By contributing as much as possible to retirement plans, you can continuously increase the value of retirement plans. This will give you the best possible opportunity to reach your goals. 

Pensions and pension planning are so complex that they can seem a bit overwhelming. But with the help of proper planning and an expert financial advisor, you can work on a plan to put yourself in a stable position to enjoy retirement. Spending time making smart decisions can make retirement years the best years of your life.

Bottom Line

As a woman, today, you have the power to pursue your destiny more than ever. As women become more proactive in the labor market in various high-powered jobs, there is much optimism about improving their financial and emotional lives, leading to a comfortable and rewarding life.

However, this will not happen without you and the other women preparing for the future by taking responsibility for your retirement. 

The second step is to fully accept your role of taking financial responsibility for yourself and taking care of others in this context. While help can be an advantageous role, some issues are incompatible with creating a financially secure pension for you. By fully understanding the implications of all caregiver roles, from caring for older parents to delivering adult children, you can position yourself to make healthier emotional and financial decisions. Finally, talk to a financial advisor to help you create a plan that will enable you to save for retirement.

James Financial Services Inc
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