Careful planning and a long term strategy can go a long way towards overcoming the obstacles, achieving your long term retirement goals and living the retirement lifestyle you desire.
Everyone faces challenges in achieving their long term financial goals, such as a successful retirement. But women seem to have a few unique obstacles to overcome. Fortunately, through financial planning and implementing a strategy, women can alleviate these obstacles.
3 Key retirement planning obstacles that women face:
- Longer Life expectancy-Women on average live 7 years longer than men which means they need to plan for a longer rather than shorter retirement.
- Lower earnings-Women on average earn less than men in the workplace. According to Women’s Institute for a Secure Retirement (WISER), men out-earn women an average of 22 to 23 cents on the dollar. Lower earnings result in less money contributed to retirement plans and social security.
- More time out of the workforce– Women typically are the caregivers. They may spend time out of the work force to raise a family or care for ailing parents or other relatives. This time away can potentially negatively impact the raises and promotion. In addition, while they are out of the workforce, women are not contributing to their pension, other retirement plans or social security which means they end up with less in savings than men.
Creating a retirement plan will help you feel more in control of your finances and give you the confidence about achieving your long term financial goals.
Here are steps you can take:
- Educate yourself by reading and attending workshops
- Review your credit usage and reduce any unnecessary debt
- Take an active role in your investments including your retirement plans
- Invest for long-term growth
- Maximize your contributions to your retirement plan
- Review your social security benefits
- Consider working with a financial planner
Remember you are in control of your financial future.
Careful planning and putting a long term strategy in place can go a long way towards overcoming the obstacles, achieving your long term retirement goals and living the retirement lifestyle you desire.