Retirement Planning Needs for Women
Retirement planning is crucial to ensure you are not financially dependent on your offspring or relatives during your golden years. Having the money to sustain your standard of living even after you retire is the most important objective of retirement planning.
Modern women are working to help shoulder family responsibilities along with their spouses. Unfortunately, financial decisions are largely left to men, which is a huge disadvantage for women.
Many women ignore their opting for the best investment plan assuming that their spouses will address such concerns. However, in the unforeseen event of your spouse’s demise or a divorce, the consequences can be disastrous.
Women need to work harder towards their retirement plans for various reasons. Here are some points that you should consider, as they highlight the importance of retirement planning.
· Life Expectancy
Women outlive men, which bodes well for them. However, it also means that women will need more money to survive for this longer duration. It should also be noted that living longer does not necessarily mean healthy living. Medical costs are high and constantly rising. In such circumstances, if you are dealing with health issues during your retirement years, you will need adequate wealth to meet the huge medical expenses.
· Less Working Years
Research shows that women often work for fewer years as compared to men. The primary reason for this is family obligations, such as tending to the children or taking care of the elders at home. This means that women also have less time to contribute towards their pension plans. Women are therefore advised to sacrifice a greater share of their salaries to secure better retirement planning. Working for companies that match all or some part of your pension contribution can help women build post-retirement wealth.
· Lower Income than Men
Although there is a lot of talk about gender equality, the truth is that there is still disparity in wages, with women earning less than their male-counterparts. Another reason for the income gap is that many women choose to work part-time, or from home, to take care of their families. No matter what the reasons, a lower income means that women have smaller amounts to put aside in pension schemes. This, in turn, reduces the amount available to them during their senior years.
Women are advised to put aside a certain sum (even it is low) each month towards their retirement corpus. Moreover, it is advisable to start early to enjoy the benefits of compounding returns. Seek advice from financial advisers to get a better understanding of your finances and planning.