According to the US Census Bureau, women still receive only 80 cents for every man’s dollar. Unequal wages doom fair sex to smaller savings. However, female life expectancy is higher.
What steps should women take to ensure that their savings provide sufficient income on retirement?
First pay yourself
Women have a negative habit of cutting costs at themselves. They save for future until they close their mortgage and educational loans. “Taking care of one’s own needs is an important part of financial well-being for the whole family,” says the article author.
Work with a financial advisor
Sociological research shows that women refuse financial advice. However, a financial expert can develop an effective tax plan and minimize losses. “You can also get help in prioritizing your savings,” the article says.
A high retirement income as part of general financial plan
“Track your savings in terms of how much you want to receive when you retire. Assess your life expectancy and set yourself high goals, then use the retirement calculator and create a sustainable strategy,” recommends the publication.
A long work experience can help create a more reliable income source upon retirement.
People who buy a retirement annuity or life insurance policy receive tax concessions in the United States. “The purpose of annuity is to ensure a stable income stream upon retirement. You pay a lump sum (or series of payments) to the insurance company, which, in turn, provides you with regular payments during the annuity term,” the journalist reminds.
Every woman should annually assess the state of her own finances, and change spending and earning strategies in case of small savings.