Women tend to know exactly what they want and are already carrying out the right strategy or planning for their retirement savings. Many studies have been done to prove this point and it is important to note that up to 11 percent more women will participate in a retirement savings plan at their place of employment than men would likely do. Voluntary enrollment plans consist of 14 percent more women likely to participate than men. For the women participating, 7 percent or higher will save more than men would. Investments made in a five year span showed considerably more returns for women in comparison to men. However, what else can women do to stay ahead of the retirement saving game?
Yes, women are certainly surpassing their male counterpart in facets of retirement savings. However research indicates that women are being left behind in aspects where it matters the most and that is in the amount that they are setting aside for retirement. This usually stems from the different levels of income that women have in comparison to men. Even though, we don’t live in a perfect world, it has been documented that men make more money in varying industries than women do. So, this is the reason for the imbalance in income levels. Men who took part in a retirement savings plan at their place of employment typically earned up to 33 percent more income than women did.
Regardless of the disparity, it is obvious that both men and women should put more into their retirement funds in order to live comfortably upon retiring. No matter what your gender, you should save for the latter years of your life. Yes, you will retire because there is no way around that as you age, but you don’t want to do so with any added stress or have to make any drastic changes to the lifestyle that you have always enjoyed. Just a few small changes to the amount of money that you put into your retirement savings can make a whole lot of difference.
Get the Numbers Right
Speak to a financial advisor about how much money you will need to retire comfortably. By running the numbers, you will know how much to put away. As it stands now, many women don’t have an idea how much they should save now for the retirement years. Most of them are going off assumption, which is the wrong way to go about it. Start with doing a projection of your savings in years. Do this for the short term and long term, working out ways that it can be done to meet your retirement goals.
There are several factors that will influence the amount that you need. Your lifestyle during the retirement is one of them as well the plans that you have on how much you will spend at that time. The rule of thumb is saving up to sixteen times what your yearly income is. However, you should include your social security benefits in the number because this is a huge part of your savings. Lastly, for other savings, you should automate the process so that you don’t see it, but it goes directly to a bank account.
If you are on your way to retirement, it means that you should have already had all your financial stuff in order. You would have had to be saving money years before; at least 20 years ago and have a solid budget and financial plan. You should also have had your investment portfolio making money for you. Your savings should be enough for you to live from. You should be in control of your financial future. Does this all describe where you are right now in your financial life? How are your spending and savings habit? What is your financial condition? Well, below are some things that you should pay attention to in order to know whether you are ready for retirement or not.
If you are in a struggle to pay your household expenses and you are close to retirement age, you may have a problem. Most financial expert would suggest that you make plans to change your lifestyle to be able to live off three quarters of your retirement income prior to retirement. For this reason, you may have to reduce your spending and expenses, using this to contribute to your retirement fund. If your retirement plan includes traveling the world and going on cruises, you are going to need a substantial amount of money in your retirement account. So, if you are struggling with bills now, then you have to reassert yourself and possibly seek financial advice on how to handle your retirement plan.
Too Much Debt
If you find yourself with too much debt as you are approaching retirement, you should pay careful attention to your financial situation. You need to reduce or get rid of credit card payments. If you have a car loan, it is time to possibly sell or trade in that vehicle for a used vehicle. If you are over 60 years of age, it may be time to speak to a mortgage professional about a reverse mortgage. You could also think of downsizing and getting a smaller home or apartment, especially if your children have already left the nest. Get into the habit of paying down your debts, whether you are close to retirement or not. In so doing, you will have the discipline to continue doing this up to retirement age. If you need help paying down your debt faster, you could consider one of these effective Tennessee flex loans.
Handling the Major Expenses
It may be time to get serious about handling those major expenses before retirement such as changing a bad roof, buying a vacation home or even repaving your driveway. When you take care of these things beforehand, it leaves room for other expenses that are not so pressing. You don’t want to take on a car payment at a certain age because then this is the kind of expense that can leave you feeling overwhelmed each month, especially living off a fixed income.
Social Security Income
Do you have an idea what your social security income will be? Is it enough to take care of your expenses? You have to do the math beforehand in finding out how much you will receive each month for social security. To be prepared for retirement, you could begin by contacting the social security office to know the amount that you will receive if you were retire earlier or later.