While women have made great strides in the workforce, those who belong to the baby boomer generation are not paid as much as men. Unfortunately, they will continue to be paid less over the course of their careers. That’s not all – with domestic responsibilities, women often serve as family caregivers too, which sometimes affects their career growth. According to the Family Caregiver Alliance, 66 percent of informal family caregivers are women, and almost a third take care of two or more people.
As per statistics, women live longer than men, which also means they need to have their retirement savings in place for a longer duration. If not, they suffer from poverty, even over the age of 65. This is why it is critical for them to plan their retirement well in advance. Fortunately, there are several ways in which women can ensure they enjoy their life post-retirement. To begin with, they should start thinking of what the next 20, 30, 40 years are going to look like. Also, how do you want post-retirement to look like – do you want to travel, get more educated, volunteer or embark on a new career? These questions are pertinent in helping you decide what post-retirement will look like.
According to The Women’s Institute for Financial Education, retirement planning should be a priority for women when they opt for a career. Besides, women should continue to work as long as they can at the highest salary possible, and at the same time, continue to save for later. Another important thing to keep in mind is diversification – try to make various investments so that your future is secure. In case you’re someone who finds it difficult to make the right investment, you can always consult a financial evangelist to help you.
Besides, women must also understand the kind of effect divorce and remarriage has on social security benefits. When a woman is divorced, she is entitled to Social Security payments that are equal to 50 percent of her ex-husband’s benefits. This is applicable if she was married to him for over 10 years. In case she decides to remarry, she will be entitled to payments, but on the new husband’s benefits.
A widow can also get benefits, as long as she does not remarry before 60.
The objective is to understand the risks and plan for the future in a good time. After all, a stitch in time saves nine!