One of the latest research studies completed on women’s retirement shows that women are still at a greater risk of a financially insecure retirement when compared with their male counterparts. In most cases, women are still being paid less than men for the same job and when various gaps in their working career are added to that, the financial difference widens.
Women tend to be the caregivers in most families, taking time off to have children and care for them as well as look after other family members such as parents or grandparents. Because of this, their retirement savings average about 40% less than that of men. There are steps that women can take to help improve their retirement outlook.
Educate Yourself
Look into ways to make your savings last longer. If possible, set up automatic transfers into a savings account or tax free savings account. Find out when it is best to withdraw money from retirement savings so you aren’t penalized or taxed. Write down your goals for preparing for your retirement years. Consider financial needs and prepare for them ahead of time. Calculate what it will cost you if you take time off work for parenting or caregiving.
Calculate Your Retirement Needs
Not everyone will need a higher income than they have at the moment. For those who own homes, there is the option of selling. Pay off all credit cards before you retire so you don’t have interest on credit adding up. Though many services will be more expensive when you retire, such as electricity, you may also be able to rid yourself of services that are no longer needed, such as a landline phone and cable tv. With cellphone plans and streaming media offering so much more value for so much less, look into these.
Working After Retirement
Many seniors are now working through at least part of their retirement. If you are already of retirement age, look into part-time job options and find out just how much you can make each month without being taxed for the whole amount.
For more ways to improve your retirement outlook, read the article, here.
