When it comes to retirement options, women have the same opportunities for saving and investing as men do. However, women are at a disadvantage in many ways due to longer life expectancy, and less time in the workforce when compared to their male counterparts.
These differences have a big impact on their golden years and what they were able to put away.
So what can women due to better prepare for their retirement years and which retirement options should they most consider?
By implementing some of the following retirement options and strategies, women can improve their circumstances:
Don’t Delay Your Contributions
There are many reasons why women might not prioritize investing toward their retirement.
Some women spend decades raising children and their tendencies to put their children first may mean they neglect their retirement savings. Kids are expensive and moms often choose music lessons or college savings before the consider investing in themselves.
Others hesitate to invest in their retirement until they earn more in their career and feel more comfortable putting some away for the future.
Another reason women might delay, or even completely neglect, to contribute to a retirement fund is that they are relying entirely on a spouse to take care of them through the end of their life. This can be a risky decision and women are encouraged to take their retirement years into their own hands.
Invest in a 401K Right Away
Even if you’re just starting out in your career and not making much money, investing all that you can in a company 401K is important for your future. Many employers match employee contributions, which is basically free money, and how can you turn down free money?
Just make sure you don’t cash out your company plan if you leave your job to stay at home with children or to switch to another place of employment.
Take Advantage of a Spousal IRA
Many couples invest in an IRA or Roth IRA for their futures together. But, did you know you can also invest in your own spousal IRA at the same time?
Doing so allows you and your husband to double your yearly contributions if you decide to which will improve the retirement years for both of you.
If you find yourself in need of extra guidance, Ellevest Reviews specializes in helping women see their full financial potential while individualized providing investment guidance.
Look Towards a Self-Directed Retirement Plan
Women who are working part-time or are self-employed can take advantage of a self-directed retirement plan such as a solo 401k, Simple IRA or SEP IRA.
These offer the capability to manage your finances as you stuff them away for retirement, which some people prefer due to the level of involvement.
Retirement Options Should Include An Advisor
When planning for retirement, women can benefit from the expert advice of a financial advisor.
Retirement plan advisors specifically can guide you through your many retirement options and pick the best course of action for your individual circumstances.
Many women are uncertain of where to start with their retirement planning. For women with big plans for their retirement years, learn more about your options and how you can better prepare for your future by contacting us.