A TransAmerica Center for Retirement Studies report recently revealed that women are less confident about their retirement benefits. The report also included the fact that women are leaning towards not retiring until they cross 65 years of age and they don’t have much faith in employer-sponsored retirement plans. The report also suggested a plan of action regarding retirement for women.
Confidence in Retirement Benefits
The report was based on a poll and stated that only 40 percent of women have some confidence in the retirement benefits while 14 percent are not at all confident. The report also stated that 26 percent women were not too confident while merely 14 percent were very confident.
The report also divulged that 54 percent of women were planning not to opt for retirement until they reach the age of 65. Only 27 percent women were sure that they would not work after they opt for retirement. Only 77 percent women want to invest in the employer-sponsored retirement savings plan and they too invest less that 10.8 percent of their salary. 55 percent women admitted that they are investing in a retirement plan that is outside work.
Being prepared is Wise
The study appreciated the decision of women to postpone their retirement as it helps avoid situations such as savings shortfall. The study also suggested that women keep a backup plan ready in case they need to retire early due to unavoidable circumstances such as health problems, losing a job or any inescapable family obligations.
The backup plans women might consider are purchasing disability insurance or choosing lifestyle changes that may save money such as moving into a smaller home.
Plan of Action Regarding Retirement for Women
The report also advised women to create a retirement strategy and pen it down. The next step is to calculate the amount needed to get a satisfying retirement saving and start investing appropriately for that. Women might also want to consider investing in employer-sponsored retirement savings plans and keeping updated on the retirement investing trends to ensure that the amount of investment is ample enough.
Women also need to ensure that they have a backup plan that helps them get retirement benefits even if they are forced to retire early as it will save them from being financially dependent on any family member or a friend.