When it comes to retirement, women face unique challenges. Women have a five-year advantage over males in terms of expected lifespan, yet they only earn 84 cents for every dollar their male coworkers bring in. Because of this, it’s not surprising that 60% of women in the most recent Merrill Lynch survey on women and money (Women & Financial Wellness) worry about having enough money to last until they die.
Women may expect to make about $1.1 million less than men over their working lives. Just let that number settle in for a second. Women are expected to multitask and complete more tasks in less time, whether they like it or not. To that end, this article outlines six strategies they can implement to make the most of their retirement funds.
Negotiate the Best Salary Offer You Can
- Also Read: New TSP Withdrawal Rules and What They Mean for Your Federal Retirement Plans
- Also Read: TSP Investment Moves That Could Help Federal Employees Retire on Their Own Terms
- Also Read: Early Retirement Myths Federal Employees Need to Stop Believing
If the initial offer needs to be higher, keep looking. Make the most of your bargaining ability by learning the market averages for your position before entering any talks.
Take On Even More Risk
Women are typically more risk-averse investors, but this isn’t sustainable when your income is lower, and your life expectancy is higher. Investors in “target date” funds, prevalent in employer-sponsored 401(k) plans, incur additional risk at the outset of their investment careers since the funds are tailored toward a specified retirement date.
Develop Your Financial Self-Assurance
When making financial plans, there is no such thing as a foolish question. Choose a financial adviser who makes you feel confident about your financial future. Even if you believe you have a good handle on personal finance, there is always more to learn and more confidence to develop.
Put Aside as Much Money as Possible
With the gender pay disparity and increased life expectancy, women must save at least 1.5 times as much as men to meet their financial goals. You can maximize the potential of compound interest if you begin saving early in your career.
Limit Your Time Away from Work
Although it is not always feasible, continuing to work after retirement might significantly impact your final retirement account balance. Women are disproportionately expected to take on the caretaker role, but this can have a devastating impact on their ability to save money. There is the loss of wages and the forfeiture of the employer’s 401(k) match.
Have The Guts to Ask for Help
Use every resource, including the internet, people you know, accountants, and books. You can’t just take a stab in the dark and hope everything works out for your finances.
Contact Information:
Email: [email protected]
Phone: 8139269909
Bio:
For over 30-years Joe Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.
Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.
