For women, retirement strategy is a long race. It’s helpful to know the route.
What do you want out of life? What is important to you? What kind of future do you want to build?
We have so much to focus on from day to day that it can be hard to think about tomorrow. But there is no question that the choices you make in the here and now will shape the future, both for yourself and the ones you love. There’s no doubt that women face unique financial challenges and preparing for retirement can look a little different for women than it does for men.
On average, women tend to live longer than men, accumulate lower lifetime earnings, and face higher health care costs. Women who are working also tend to put less money aside for retirement. According to one report, women contribute 30% less to their retirement accounts than men.¹, ²
Sometimes, we need to take time to look after what matters. Your ideal financial strategy is based on knowing what you want out of life and what you want your future to look like. With a little foresight, you can start taking steps now, which may help you in the long run. So, if you know where you want to go, how do you get there?
- Talk about money. Nowadays, discussing money is less taboo than it’s been in the past, and taking control of your financial future is crucial. If you’re single, consider writing down your retirement goals and keeping them readily accessible. If you have a partner, make sure you are both on the same page regarding your retirement goals. The more comfortably you can talk about your future, the more confident you may be to make important decisions when they come up. Make sure to set clear goals for your future and share them with your financial advisor. Continue to educate yourself on best investment practices and review your financial strategy often.
- Be proactive about your retirement. Do you have clear, defined goals for what you want your retirement to look like? And do you know where your retirement accounts stand today? Being proactive with your retirement accounts allows you to create a goal-oriented roadmap. It may also help you adapt when necessary and continue your journey regardless of things like relationship status or market fluctuations.
- Make room for your future in your budget. Adjust your budget to allow for retirement savings, just as you would for a new home or your dream vacation. Like any of your other financial goals, you may find it beneficial to review your retirement goals regularly to ensure you’re on track.
Retirement may look a little different for women, but with the right strategies – and support – you’ll be able to live the retirement you’ve always dreamed of.