The facts are clear, women tend to live longer than men, and tend to have less money to live on in their later years. There are many reasons, including the impact of the gender wage gap on retirement savings.
According
to recent research from the Transamerica Center for Retirement Studies, just
19% of women have a written retirement plan compared with 34% of men. This may
not seem like a big deal, but since not knowing where to start is a leading
obstacle to retirement savings, the process of making a written plan can make a
world of difference in retirement readiness.
The first step in making a written retirement plan is to identify when you'll leave
the workforce. This tells you what your government benefits will be, what your
deadline is for building your nest egg, and how long your money will need to
support you.
When
considering your retirement age, err on the side of retiring earlier rather
than later. While many people plan to work well into retirement, few do. The
easiest way to do this is to plan to retire at the age where you can claim your
government's retirement benefit, you'll be in good shape to leave work then if
you must. If it turns out you can work longer, you'll simply end up with some
extra money.
Next,
you'll need to figure out how much money you'll need as a retiree. There are
several approaches to doing this calculation, but one of the easiest is to
figure out your final salary and assume you'll need 10 times that amount. If
you're 20 years away from retirement, assume a 1% raise each year from now
until you leave the workforce to calculate your final salary, and then multiply
that amount by 10.
Once
you've got an idea of how large your nest egg needs to be, it's time to break
that big number down so you'll know what to save each month to achieve it.
There are lots of online calculators that can help you do that.
Setting
a monthly goal makes it possible to work retirement savings into your budget
and, ideally, to automate your investments so money is transferred right away
to your investment account.
Investing
your money can help you hit your retirement target because your invested funds
will work for you. But you want to minimize the risk associated with investing
-- and developing a comprehensive strategy is the best way to do that. The best
way to do this is to see a Registered independent Financial Planner
Finally,
keep track of your progress and make sure you're following your written plan
and are on track to achieving your goal.
By
taking these steps, you can make sure you're well-prepared for retirement. And
it's not just women who should take them -- although of course women owe it to
themselves to be just as likely to make a written plan as men. The reality is,
no matter your gender, a written retirement plan is necessary to prepare for
your future
It is a fact that women usually outlive their spouse. In planning for retirement it makes sense to also find and write down the location of all important documents, files and personal contacts.When there is an interruption in managing our lives the woman will need that information. Check out My Life Directory ....it is easy and confidential. Eileen
ReplyDeleteThe wife usually survives her husband. In addition to retirement planning, take time to find and write down the location of all important documents, records and personal/business contacts. When there is an interruption in managing life, she and family will know where everything is. One way is to use My Life Directory, easy and confidential.
ReplyDelete