Women and Retirement | Women's History Month
March is Women’s History month, and it is a wonderful time to reflect on the unique factors that shape retirement planning for women. Women tend to face different financial challenges compared to men, making it essential to take a proactive approach to securing their financial future. Let’s take a look at what women should consider and how they can strategize to help navigate retirement planning:
Longevity & Retirement Savings
Women generally live longer than men.1 While a longer lifespan is a positive, it means that they increase the risk of outliving their savings. It is essential that women plan for retirement by starting early and planning for a lengthier retirement period.
Career Interruptions
Many women take breaks in their career for caregiving responsibilities. These breaks could include having and caring for children or taking care of aging family members. These interruptions can lead to lower lifetime earnings and reduced contributions to retirement savings accounts.
Part-Time Employment
Some women choose to work part time at certain stages of their lives as it helps balance family and career responsibilities. This is a wonderful option to take care of their families while also still bringing in some income. However, part-time positions tend to come with limited access to employer-sponsored retirement plans, reducing overall contributions and potential investment growth over time.
Understanding the unique challenges women face in retirement planning is a crucial step toward implementing effective solutions. Here are some strategies to help women successfully plan for retirement:
Start Early and Stay Informed
Early education is essential when it comes to planning for retirement. Encourage the women around you to seek information to become financially literate. This knowledge can empower them to make informed decisions about their investments and retirement.
Flexible Work Arrangements
Employers can contribute to closing the retirement gap by offering flexible work arrangements that accommodate women's career interruptions without penalizing their retirement benefits. Additionally, promoting workplace policies that support work-life balance can aid women in maintaining consistent employment and income.
Social Security Optimization
Understanding the nuances of Social Security benefits is crucial for women. Optimizing claiming strategies, considering spousal benefits, and being aware of survivor benefits can help women maximize their Social Security income during retirement.
As we honor Women’s History Month, we recognize both the achievements of women and the challenges they continue to face. By increasing awareness, promoting financial literacy, and advocating for systemic change, we can help create a more equitable retirement landscape for all women.
- https://time.com/6334873/u-s-life-expectancy-gender-gap/
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.