4 Step Process to Help Women Prepare for Retirement
Many men and women may approach money management and financial wellness differently and this difference often extends to planning for retirement. While they still may have some of the same financial goals, women may face different challenges and may not always have the same outlook or needs as men when it comes to saving for the future. If you are not where you want to be on your retirement planning journey, do not worry! Here are four steps women can take today to help prepare for the road ahead:
Understand the Challenges. Saving enough for retirement can be challenging for anyone, but unfortunately, it can be even more difficult for women. On average, a woman turning 65 can expect to live until approximate age meaning a potentially lengthy retirement with greater expenses. Without proper planning, you may not have enough income to last if you do.
In addition, there is a wage gap for women, they take more time away from work to care for children or elderly 85.6 parents (sometimes simultaneously) and may have higher health care costs in retirement due to longevity. While these hurdles may feel overwhelming, understanding and preparing for them can help you diffuse the risks and determine the amount of savings you will need to meet your goals. Remember, the planning you do today will help determine how you live tomorrow.
Get Involved. Even though the traditional gender roles within many households remain unchanged, the role of the breadwinner has shifted for many couples. And while men may still take the lead in some relationships, men, and women both believe joint participation in financial decisions is important, according to 2020 UBS Global Wealth Management’s latest Own your worth report. Since, on average, women are living longer than men, it is crucial to be more engaged in long-term planning and ensure you have a well-thought-out retirement income strategy.
If you have been hands-off up until now, there is no time like the present to get in the game. Take time to get up to speed on your current finances, educate yourself through online resources and have a financial professional answer your questions. Being an active participant in financial decision-making can be empowering as you play a vital role in helping secure your financial future.
Envision Your Retirement. An important exercise in preparing for retirement is picturing what you want those golden years to look like and who you will be as a retiree. Connecting with your future self can bring the importance of financial planning to the foreground and inspire you to take care of the person you will one day become.
Help plan for happiness by writing down who you want to be in 20 or 30 years, what your day-to-day life will look like, what activities you will be doing, and who you will be spending your time with. By making the future less of a stranger and creating a detailed image of your life, you will likely become more of an advocate for your older self and take the steps necessary to create a retirement strategy that will work for you.