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Retirement Planning for Women

Retirement Planning for Women

While the basics of planning for retirement are the same for men and women, women face unique challenges. They often spend less time in the workforce and command lower salaries than their male counterparts, but many women also don’t take an active approach to retirement planning. Our financial advisors can help you understand and combat the unique challenges you face in preparing for a comfortable retirement.

<h2><span style="font-weight: 400;" data-mce-style="font-weight: 400;">Challenges Women Face</span></h2>

Challenges Women Face

On average, women live longer than men. This means their retirement fund must be larger to provide for the additional years. Unfortunately, women usually earn lower salaries, which means their 401(k) matches are lower. More women than men work part-time, which means they’re not eligible to contribute to a 401(k) at all.

Women also spend more time caring for others, including children, parents, and other dependents. This means they spend less time working, which is one reason for the gender gap in earnings. When women stay home or work part-time jobs, it takes them longer to move up the ranks and build a career. All these factors cause women to have fewer retirement savings than men.

<h2><span style="font-weight: 400;" data-mce-style="font-weight: 400;">Create a Retirement Plan</span></h2>

Create a Retirement Plan

To protect your earnings during retirement, we recommend creating a long-term care plan. If you require long-term care, insurance can cover the gap and protect your retirement accounts. Long-term care insurance covers expenses typically not covered by medical insurance, including nursing home costs and in-home healthcare. Without a long-term care plan, you may have to rely on friends and family to care for you or deplete your life’s savings. 

<h2><span style="font-weight: 400;" data-mce-style="font-weight: 400;">Maximize Your Retirement Income</span></h2>

Maximize Your Retirement Income

It’s important for women to do everything they can to maximize that retirement income. Since Social Security benefits are calculated based on your earnings and your 401(k) matches are typically a percentage of your earnings, we’d encourage you to go after that raise or promotion and increase your salary. If you have to switch employers to get a raise, we’ll help you with your 401(k) rollover.

It can also be beneficial to wait longer to retire. You can increase your Social Security benefits by waiting until age 70 to apply for them. This gives you more higher income years that count toward the benefits. In retirement, it’s important to have a distribution plan. You can use annuities to provide a stable retirement income while the assets in your portfolio continue to work hard for you.

FAQs about Retirement Planning for Women

How Can I Increase My Retirement Income?

To increase your retirement income, you’ll have to invest more of your earnings. You’ll also want to evaluate your salary and pursue raises and promotions. To increase your Social Security income, you can wait until you’re closer to age 70 to receive distributions. 

How Can a Retirement Planner Help Me?

A retirement planner can help you better understand your current financial position and what you need to do to reach your goals. With our help, you can create a retirement plan that allows you to save and invest for a prosperous retirement while protecting your current financial assets. 

How Much Do I Need to Save for Retirement?

Women may need to save more for retirement because their life expectancy is greater than men’s. People suggest contributing 10 to 15% of your pre-tax income toward retirement, but you may need to contribute more if you’re catching up. After you max out your retirement contributions, you can invest additional cash in a private investment portfolio. Call us today and we’ll calculate how much you need to save for retirement. 

Let’s Create Your Retirement Plan Today

Let us help you prepare for your prosperous retirement by creating a retirement plan. We’ll analyze your financial situations and discuss your investment objectives. Together, we’ll come up with a strategy to help you create the retirement lifestyle you want. Call today to schedule a consultation. 

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