Retirement indicates the end of one’s primary career regardless of gender, but the retirement process can look slightly different for women due to gender gaps and societal expectations. At times, retirement may even be somewhat more challenging for women due to these reasons. Women, on average, can live slightly longer than men but won’t be paid as much, making savings scarcer. This guide will help women prepare for a fulfilling, independent, and stress-free retirement. (Disclaimer: This article contains spons0red content, meaning we may receive compensation from the products or services mentioned.)
Start Saving (And Educate Yourself)
It is never too early to save for retirement. Women will likely experience a gender pay gap regardless of maternity leave. Women who give birth must also account for wage loss due to maternity leave if their work does not provide paid benefits. Therefore, as a woman, you should be proactive about general saving, especially for retirement. You should save as early as possible, even in your twenties, and aim for a goal of at least 10-15% of your income. Pay your taxes to earn social security benefits. Take advantage of employer-offered retirement funds, like a 401(k) or individual retirement account (IRA). Educate yourself if you’re not brushed up on savings and investment skills. There are plenty of online resources to educate yourself financially. You can also take classes or hire a financial advisor to assist you.
Get Social Security Benefits
You can likely receive Social Security benefits if you’ve been employed for at least ten years. You will want to ensure that when you reach full retirement age (66 or 67 for most people, depending on your birthdate), you receive the total amount of your benefits promptly. If not, you’ll want to consult with the Social Security office to determine the issue. Social Security is an excellent source of income during retirement.
Find the Best Healthcare Team
Women may live longer, which means you will need an excellent healthcare team at your side. Additionally, you’ll want a healthcare team that will listen to your needs, concerns, and conditions as a woman. If you don’t have a supportive and empathetic doctor, you may need a change in medical scenery. Many older women go through menopause and other hormonal imbalances that require an experienced doctor to manage.
Don’t Rely on Your Spouse
There’s nothing wrong with getting married or sharing income with your partner. However, if you solely rely on your partner for financial reasons, you could be left at a disadvantage regarding retirement. Set aside your own retirement plan and savings. Have your own source of income in case of emergencies or life changes. If you’re a stay-at-home mom, find a way to generate some income, assets, or savings.
Solidify Retirement Goals
The most important aspect of enjoying retirement is to know what you want to do. If your goal is owning a home, ensure you can reach that goal by retirement age. If you’d like to travel, decide when, where, and for how long. If you’d like to live in a senior community, ensure your retirement savings can handle those monthly costs. Have you chosen a city to retire in? Will you stop working entirely, or will you work small jobs? If you haven’t decided, there’s never a wrong time to.
Plan Your Estate
When you end your working life, it’s time to start considering your future and the future of your family, assets, and legacy. Whether you’re a career woman or a stay-at-home mom, you will want to solidify your family’s future. Hire an estate attorney to take care of your affairs. Include in your will what will happen when you die. Designate your beneficiaries, spouse, partner, friend, or children. If you end up medically unable to make decisions for yourself or your business, who will decide? Advance directives and power of attorney are also smart ways to handle your retirement years.
Understand Senior Communities
If you want a stress-free retirement, you can live in an independent senior community. In these communities, you’ll live in a safe area with other retirees, but you won’t have to worry about home repairs, landscaping, or other types of maintenance. You’ll also have access to food, pools, fitness centers, and sports courts. You can make a lot of friends in senior communities when you retire. There are other types of senior communities with more hands-on care if mobility or memory becomes an issue, like assisted living or nursing homes. However, before selecting any senior community, you will want to protect yourself as an older adult and a woman. Unfortunately, low-quality nursing homes can result in elder abuse, including sexual assault. Nursing home abuse is more prevalent in women, so it’s crucial to vet any community before moving in. Report any abuse you see or experience. If worse comes to worst, know your rights and consult with a nursing home abuse and neglect lawyer.
Conclusion
Planning for retirement may be extra challenging for many women due to pay gaps, maternity leave, or stay-at-home lifestyles. Additionally, on average, women can live longer than men, so you’ll want your savings to be at their full potential. Avoid relying solely on your spouse for savings. Save 10-15% of your income as early as possible. Pay into Social Security and any retirement funds that you can. Make sure you solidify your retirement goals, find a quality healthcare team, and choose the right community for your needs.