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.