No one wants to think about or admit that they are getting older. Every year the phrase keeps getting pushed back – 40 is the new 30, 50 is the new 40 –in the never-ending search for youthfulness. There are many biases women face. On average, men are paid more for the same job and level of experience. Unfortunately, the reality is that many women are the primary family income earners, they live longer and will therefore need more retirement savings. What steps can you take to ensure that you are planning accordingly? Here are some retirement tips for women to help ease into that transition:
The Early Bird…
Start saving early! Don’t wait until it’s too late to contribute to your retirement. The earlier you start, the more you’ll be able to save AND be able to set aside additional monies to invest. The goal is to begin early and invest for continued growth.
Think about your long-term retirement goals holistically. It’s one thing to simply put a certain amount into a savings account, yet another thing entirely to monitor your investments. Be invested in your investments! Be aware of risks, keep an eye on performance, and focus on growth. You may even want to hire someone to help you keep track and/or advise you on investment strategies. An estate/financial planner can assist you with finding ways to maximize and protect your assets.
We all know that a gender pay gap exists. Know your worth and don’t be afraid to speak up. If you deserve higher pay – ask for it. Be prepared with a convincing argument and stand your ground. There is only one way to evoke change. Start by asking – you might be pleasantly surprised with the results.
Delay, delay, delay…
If possible, wait as long as you can before tapping in to your Social Security benefits. The longer you delay, the more you will receive. Don’t make the mistake of claiming benefits when you first become eligible at 62 (unless necessary), as your benefit will be reduced by nearly 30 percent. Hold off as long as you can – ideally until you are 70 – as this will substantially increase your benefits and reduce the risk of outliving your wealth.
More Retirement Tips for Women
In addition to focusing on building wealth and retirement savings, you should also consider a comprehensive estate plan to preserve that wealth for your heirs. Retirement planning and estate planning often work hand-in-hand. Contact us to schedule a consultation on estate planning and more retirement tips for women.