Facts women and retirement steps to take

Yesterday and today's post was taken from the Transamerica Survey 2018 written by Catherine Collinson who is a champion of everyday people including those who are at risk of not achieving a financially secure retirement. She currently serves as CEO and president of nonprofit Transamerica Institute® and Transamerica Center for Retirement Studies® and executive director of Aegon Center for Longevity and Retirement.

The good news is that small steps, when taken together, can add up to great strides in retirement preparedness.  Retirement will be unique for each woman, but the tools to help achieve retirement readiness are common to all. Now is the time for every woman to focus on achieving a financially secure retirement.

1. Start saving for retirement and get into the habit of saving on a regular, consistent basis. Save as much as you can, knowing that both small and large amounts add up and compound over time.
2. If your employer offers a retirement plan, participate. Be sure that your contribution rate takes full advantage of employer matching contributions, if available. Take advantage of the IRS Saver’s Credit if eligible. Consider taking advantage of catch-up contributions if you are age 50 or older.
3. Develop a retirement strategy and write it down. Envision your future retirement and use an online calculator to estimate your long-term savings needs. Then formulate a goal for how much you will need to save each year (be sure to include employer-sponsored retirement plans and outside savings) – and hold yourself accountable for saving.
4. When facing life’s important decisions about whether to reduce work hours or take time out of the workforce to be a parent or caregiver, carefully consider the financial trade-offs and options –such as shifting to part-time work – to help mitigate the impact on long-term financial security.
5. Maintain your ability to continue working past age 65. Keep your job skills up to date or learn new ones. Many employers, community colleges and nonprofits offer classes in the latest technologies and careers. Networking groups offer opportunities to meet more people in particular professions.
6. Become personally involved in your family finances ranging from daily budgeting to long-term planning. Discuss retirement saving and planning with family and close friends. An open dialogue with family members about expectations of either needing to provide or receive financial support should be part of every woman’s retirement strategy.
7. Get educated about retirement investing. Learn about possible ways to help make savings last longer including when to take withdrawals from retirement accounts to minimize taxes and penalties, and the best time to start Social Security to maximize benefits. Seek professional assistance if needed.
8. Have a backup plan in the event of unforeseen circumstances such as separation, divorce, loss of a partner, or being unable to work before your planned retirement. Consider emergency savings; insurance products such as disability insurance and life insurance; and possible ways to cut costs if needed, such as moving to a smaller home, taking on a roommate(s) or scaling back transportation costs.
9. Take care of yourself and safeguard your health. Make a habit of eating healthfully, exercising regularly, getting plenty of rest, and managing stress. Be sure to get routine physicals and recommended health screenings. Seek medical attention when needed.

Learn more about women’s retirement outlook as well as saving and investing for retirement at www.transamericacenter.org.