Saving for retirement is no different for women than it is for men, we both want to live comfortably in retirement and want to be able to provide for our own and our families’ health care costs. Here are a couple of statistics that show that women may need a little extra guidance and discipline when it comes to saving for your retirement.
“Less than 20% of women feel very prepared to make wise financial decisions. Half indicate that they need some help and one-third feels that they need a lot of help.” – Financial Experience & Behaviors Among Women 2010-2011
“Nearly two-thirds of U.S. Women ages 40 to 79 have already dealt with a major financial “life crisis” such as job loss, divorce, death of a spouse, or serious illness.” –AARP, Understanding Women’s Financial Needs and Behaviors
“80-90% of women will be solely responsible for their finances at some point in their lives- mainly due to divorce and the fact that on average women outlive men by seven years.” – National Center for Women and Retirement Research
Women need to make sure they are educated on their finances and learn the basics of saving and investing for retirement. From spending less than you earn to taking advantage of company matching programs. Learn more about how to balance savings for retirement with other goals you have in mind. We encourage you to read financial books, go to seminars, talk to your financial advisor, ask questions, and take an active role in your household finances.
“Women own 40% of all stocks.” – A.T. Kearney
“66% of household breadwinners and co-breadwinners are women” – The Shriver Report
“Women account for 85% of all consumer purchase on everything from autos to healthcare including 89% of Bank accounts”. – Marketing to Women Conference
We all know women on average live longer than men, and it’s no secret that women make less money for doing the same job. This causes a big problem for women as they try to save for retirement. The longer a person lives the higher the chances are they will suffer more types of illness, and that may come with long term care expenses.
One of the best ways to prepare for your retirement is to just do it. Start today, Max out your 401K contributions. Start saving as much as you can now, the more you can invest when you’re young, the better off you’ll be. Extra money? Don’t just spend it. Every time you receive a raise, increase your contribution percentage. Try to dedicate at least half of the money to your retirement plan.
It may be tempting to take your tax refund or salary bonus and go splurge on a vacation or shopping spree. Treat yourself with something smaller and use the rest to put toward your retirement goal.
Examine your budget, shop for a lower rate on your car insurance, bring your lunch to work instead of buying it. There are many budget worksheets available online that can help you determine where your money is going and find places to reduce spending.
Have questions? Feel free to contact Wamhoff Financial Planning and Accounting at 636-573-1212