Women still face challenges to a fulfilling retirement, mostly because of a lack of money. But there is hope on the horizon, according to the Transamerica Center for Retirement Studies, which says women can take small steps to build to a big payoff in retirement.
“Retirement will be unique for each woman, but the tools to help achieve retirement readiness are common to all. Now is the time for every woman to focus on achieving a financially secure retirement,” says Transamerica in the 16th Annual Transamerica Retirement Survey.
Following are eight things women can do to paint a better picture for their retirement readiness.
No. 8: Start saving consistently for retirement. Save as much as you can, knowing that both small and large amounts add up over time.
No. 7: Consider retirement benefits as part of your total compensation. If your employer doesn’t offer you a retirement plan, ask for one.
No. 6: If your employer offers a retirement plan, participate and contribute enough to take advantage of the full employers’ match. Use the IRS Saver’s Credit if you are eligible. Consider taking advantage of catch-up contributions if you are age 50 or older.
No. 5: Develop a retirement strategy and write it down. Use an online calculator to estimate your long-term savings needs, formulate a plan and hold yourself accountable for saving.
No. 4: When facing life’s important decisions about whether to reduce work hours or take time out of the workforce, carefully consider options such as shifting to part-time work to help mitigate the impact on long-term financial security.
No. 3: Become personally involved in your family finances ranging from daily budgeting to long-term planning. Discuss retirement saving and planning. An open dialogue with family members about expectations of either needing to provide or receive financial support should be part of every woman’s retirement strategy.
No. 2: Get educated about retirement investing. Learn about possible ways to help make savings last longer, including when to take withdrawals from retirement accounts to minimize taxes and penalties, and when to start Social Security to maximize benefits. Seek professional assistance if needed.
No. 1: Have a backup plan in the event of unforeseen circumstances such as separation, divorce, loss of a partner, or being unable to work before your planned retirement. Consider emergency savings; insurance products and ways to cut costs if needed. Keep your job skills up to date.