Are you looking for retirement tips for women? According to reports, 46% of women are not confident about their retirement. Based on the article, it is revealed that there are a lot of factors that affect the ability of women workers to save more for their retirement.
When women are unable to save enough for retirement, they are forced to rely on their Social Security to finance their needs. This means they only have between $1,000 to $2,000 each month. This is not enough to fund a comfortable lifestyle.
This is why women need specific retirement tips that will help them reach their saving goals. It is very important for everyone to have enough money for retirement. It is not just the living expenses that you need to think about. You also have to consider the health-related costs that you need to spend on. When you are older, your body needs more attention. If you lived a reckless and unhealthy lifestyle, your body will feel the effects when you get older. It is important for you to be prepared – otherwise, you might suffer in the end.
The good news is, it is not impossible to reach your retirement saving goals. In fact, there are specific retirement tips for women that you can refer to for help. But before you can look into that, it is important to know what is keeping you from reaching your target retirement fund. When you have identified the problem, it should be easier for you to find the solution.
Common reasons why women cannot save more for retirement
According to statistics, 18% of women expect that 90% of their retirement income will come from their Social Security benefits. With what we know of the average amount coming from Social Security, this is not enough for anyone.
Obviously, women are having a hard time saving for retirement. This is why they need additional retirement tips for women so they can overcome this financial difficulty. But we might have to identify what makes it so hard to save in the first place.
Women make less money
First of all, women usually make less money than their male counterparts. Although more women participate in the retirement plan sponsored by their employers, the amount that they save is usually lower. There are many factors contributing to this situation. Most of the time, women are the ones leaving work to take care of their kids – sometimes even their aging parents. That alone makes them earn a lot less overall. This leads to a smaller retirement fund.
Women will give up their career for family
We have established that women are more likely to leave their work. But not everyone will leave it permanently. Some women are fortunate enough to be able to find work when the kids are grown up. But not everyone is lucky. There are those who remain a housewife until retirement. This leaves them with practically no retirement fund. They will most likely rely on what their husband will get. It makes the retirement situation more perilous – but that is the reality for some women. These are the people who need more retirement tips for women.
Women spend on their kids first
We all know that once the kids arrive, they have a huge influence on the household budget. Whatever they need will come first – and it is the women that usually feel strongly about that. This means they are the ones who will most likely shell out the money to pay for what they need. Instead of using the extra money to save for retirement, they spend it on the kids.
Women prioritize short-term goals
These short-term goals come in all forms. It can be a bill that has to be paid first. It can also be a debt that requires repayment. From the financial needs of the kids to the unexpected expenses, there are so many things that require spending around the house. Sometimes, it is the women who shoulder these expenses – making it harder for them to prioritize their long-term goals – specifically saving for retirement.
These are the common reasons why women are most likely saving less for retirement – at least, compared to men. This is actually scary because women need more money when they retire. It is not because they prefer a more expensive lifestyle. It is because they need more to survive. Statistics reveal that they live longer than men and are usually spending more when it comes to healthcare costs. These two alone prove that there is a real need for retirement tips for women.
Tips for women to save more in retirement
Of course, saying that you should save more for retirement is easier said than done. At least, when you consider the reasons provided above. It seems like the odds are against women when it comes to making sure their financial future is secure. According to reports, women are still at a financial disadvantage when compared to their male counterpart. Despite the fact that they have a higher educational attainment and more career opportunities, their retirement security is still not the same.
While it is obviously harder, it is not impossible to save for retirement if you are serious about it. After all, if you want to do something so bad, you will find a way to do it.
Fortunately, there are a lot of retirement tips for women that will help them make their financial future more secure.
Know the retirement plan of your spouse
If you are forced to give up your career for the family, you need to make sure that your husband’s retirement plan is sufficient for the both of you. It is important that you familiarize yourself with this. Make sure you discuss this with your spouse. If they do not have one, convince them to set up one. And if you can afford it, get one for yourself.
Do not be discouraged by small contributions
You can start small if your finances are tight. A small retirement fund is better than just relying on your Social Security alone. If you do this early, you can take advantage of compound interest. Any extra money that you have should be put towards your retirement fund. And once you get the chance, try to increase your contributions.
Improve your spending habits
Another thing that you need to work on is your spending habits. Among the retirement tips for women, this might be harder to commit to – especially since women are usually responsible for buying the things around the house. But there are certain signs that indicate a need to improve how you spend your money. First of all, you need to make a decision to spend only on what is necessary. In case you really want to buy something that is not a basic necessity, you need to think carefully if this expense will help you be more productive or if it will improve your overall well-being. If not, then skip the expense. If this is too hard, you can at least be more conscious of where your money goes. The changes you will make on your spending should help you get the extra money that can increase your retirement fund contributions.
Trick yourself into saving
There are several ways to trick yourself into saving more. Some of them can actually be challenging while others can be fun. There is this one trick where you have to choose one day each week when you will not spend actively on anything. Of course, the necessary expenses like food and transportation will be spent on. But for the rest, the morning latte or that impulsive expense will be ignored. Since you are conscious about your spending during that day, you will naturally be inclined to think about how much you spend on the basic necessities.
Shop with a list
Always do your shopping errands with a list. This does not only include groceries. Anything that involves spending like buying clothes or items for the house should be done with a list. This will ensure that you will only get what you need. Anything that is not on the list should not be bought. But you can keep those items in mind. If you still feel strongly about buying them, include them in the list the next time you go on a shopping errand.
Learn to say NO
The last of the retirement tips for women that you need to follow is to learn how to say NO. Sometimes, that is the problem when you care too much for the people around you. While it does not always mean you are being taken advantage of, it can make you miss out on a great retirement fund. You need to learn to say NO if it will compromise your finances. You can help out in other ways – it does not have to involve you shelling out cash.
Consider all of these retirement tips for women if you really want to have a secure financial future. It will help keep the stress and anxiety levels from messing with you every time you think about what will happen to you when you retire.