Women tend to face challenges that many men do not have to go through when it comes to retirement. One of the first is that women tend to live longer than men do. Also, there is the tendency of women being caregivers which can add financial and emotional strain.
Lastly, there have been studies conducted revealing that women are less comfortable managing their retirement investments and making investment decisions than men. 19% of women are confident they are on track to retire without running out of money, according to a survey from TIAA that questioned more than 3,000 adults. That is compared to 35% of men, the survey found (1).
Additionally, only 31% of women surveyed said they were able to save for retirement (1).
These statistics can be discouraging, but can be combated with the right approach.
1. Access your current situation and start planning as if you were solo
To avoid being at risk and heavily relying on someone else to manage your finances take ownership of them. Handing off investing decisions to your significant other or anyone else proves to not be a wise decision. This is applicable for wives and husbands. If you have a spouse or significant work together and get on the same page finances.
Be honest about your current position when it comes to the investments you have and how much you have in savings.
2. Learn what you can about investments and save
The more knowledge you have about 401(k)s, Roth IRAs and mutual funds, the more confidently you can save for retirement. Consider working longer to increase the amount of time you are investing into tax-advantaged retirement accounts like your 401(k) at work.
3. Build your community
Next, start to surround yourself with people that are like minded. This is not a journey you have to do alone. You can make connection through social media groups and community groups. These can be people you lean on when you are going through tough times.
This is a new part of your life you are starting and taking the time to build healthy connections can enrich the experience.
4. Seek help from a financial professional
You can still achieve the retirement you dreamed of with the right strategies implemented. A trusted financial advisor can help you develop that road map to help alleviate some of that stress or concern you may have about your retirement.
If you are in need of a financial advisor that specializes in helping you make your retirement a successful one, our team at Bridgelight Financial Advisors would love to help you experience confidence in every aspect of your financial plan. Call (203) 795-7080, email Advice@BridgelightAdvisors.com, or schedule an appointment online to meet and get started.
About Bill
Bill Leavitt is the president of Bridgelight Financial Advisors, an independent, privately owned fiduciary financial advisory and financial planning firm. He specializes in working with pre-retirees, retirees, professionals, and women investors, helping them navigate a complicated and ever-changing investment landscape. With over 25 years of experience, Bill serves his clients using his own unique financial planning model, The Wealth Focus™ Process, where he helps clients develop their customized long-term wealth strategy in four comprehensive steps. A Connecticut native, Bill resides in southern Connecticut with his wife, Laura, and their three daughters. To learn more about Bill, connect with him on LinkedIn.
(1) Reinicke, C. (2022, March 24). The pandemic has widened the gap between women and men’s retirement savings. What to know about catching up. CNBC. Retrieved March 3, 2023, from https://www.cnbc.com/2022/03/24/only-19-percent-of-women-are-confident-theyre-saving-enough-to-retire-.html