When it comes to retirement, women may face unique obstacles that can make saving for retirement more challenging. Given that the typical lifespan for women is about 6 years longer than men, retirement money for women may need to stretch even further.1 Additionally, although the pay gap is narrowing, women earn less than men, on average, making it a little harder for women to save extra funds for retirement. Women may also decrease their earnings if they take time away from work to raise children or care for elderly relatives.
Despite these challenges, a wise strategy can give women reasons to be hopeful.
Get Clear on Your Vision
Do you want to spend your retired years traveling, or do you envision staying closer to home? Are you seeing yourself moving to a retirement community, or do you want to live as independently as you can? If you’re married, sit down with your spouse to discuss your visions for retirement.
You can’t see if you’re on track for your goals if you haven’t defined them. If you do find you’re falling short of where you want to be, a financial professional can help you strategize about how you can either get to where you want to go or adjust your strategy to fit your situation.
As mentioned, women are more likely to become caregivers. View our blog “5 Financial Wellness Tips for the Sandwich Generation” for tips to help prepare for being a caregiver of parents and children simultaneously.
Get Creative with Your Strategy
If you expect to or have taken time off from the workforce to care for children or other reasons, you may want to increase your contributions to your retirement accounts while you are working. If you’re staying home while your spouse works, you may be able to contribute to an individual retirement account.
Once you reach age 73, you must begin taking required minimum distributions from a Traditional Individual Retirement Account and other retirement plans in most circumstances. Withdrawals from Traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Traditional IRA contributions may be fully or partially deductible, depending on your adjusted gross income.
Talk with a financial professional if you have questions about your RMDs or withdrawals.
Keep the Conversation Open
One of the best things you can do is to make sure you are having regular conversations about finances and hearing from well-informed sources. There are more resources than ever at your disposal, and working with a trusted financial professional can help ensure that you always know where things stand. Give the Emerj360 team a call at 1-833-637-5360 or schedule a meeting.
While women can face many challenges as they save for retirement, careful preparation and a creative approach can help you rise to the occasion and pursue the fulfillment of your goals.
Watch our “Women, Wealth, and Wisdom” webinar recording for additional insights on the unique financial challenges women face and strategies you can put in place.
Sources
- Urban.org, June 9, 2023
- JoinGivers.com, August 31, 2023
