When it comes to the workplace, women will typically spend much less time over the course of their life working as compared to men, and as such, their retirement savings tend to also be lower than men. The downside, however, is in statistics: women live longer than men. This trend is unfortunate for women- most of them will struggle financially after their retirement. However, women can still improve their retirement savings by seeking the right advice and being strategic about their earnings. Here are some useful ideas for women who are concerned about their financial future:
- Be Realistic about Social Security Benefits
A recent survey indicated that most women only depend on Social Security as a source of retirement income. This dependency is a dangerous trend- a lot of women are not aware of the details of Social Security coverage, and as such tend to struggle financially when they cannot support themselves. Also, over 74% of women are exposed to lower lifetime income when they collect benefits earlier than expected.
- Do not underestimate your Retirement Needs
The other misconception that women have about retirement is that they will remain healthy. However, your lifestyle can be affected negatively by the high cost of healthcare during retirement. You may not have your desired lifestyle as a result of the healthcare expenses that are associated with old age, and that is why there is a need for women to save for their future healthcare needs. This means that there is a need for women to increase their retirement savings, because after all, the older you get, the harder it is to remain healthy.
- Being Strategic about your earning Power
Women need to improve their skills on a regular basis to boost their earning power. Most women plan to work beyond 65 years and also take a lot of breaks in their careers, and that is why their skills must remain fresh. Women can work on a contract basis when they have the right skills hence the need to expand their professional abilities by taking extra classes. Keeping your marketable skills honed, and even learning new skills that will specifically be useful as a contract employee, such as basic web design or copy editing, can ensure that your earning power stays updated and reliable.
- Consider working with a Retirement Advisor
Working with a financial advisor who can see the big picture can help women make the right decisions when it comes to retirement savings. Women have a lot of things going on in their lives and working with a professional can give them a sense of direction. Public Sector Retirement Educators (www.psreducators.com) can help you find and build an effectively plan for a safe and secure retirement.