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Women face greater financial long-term risks than men due to several factors. These factors include having a longer lifespan, needing to pay for medical expenses, loss of spouse, and gender pay gap.
Senior Wealth Advisor Sandy Higgins highlighted: “There are varied reasons for this gap, but what holds true are the statistics and cumulative impact of this on retirement savings.”
While the difference between the wages of men and women do not seem large to many, the results can be substantial over time. Thus, it is important for women to focus on their retirement plan. Consider the following tips.
#1: INCREASE YOUR KNOWLEDGE
Despite having a tendency of being more responsible with money, women were not allowed to open a bank account in their name before the 60s. Today, men are still regarded as the primary financial providers for their families.
Dance with the times by being educated on your finances. Brush up your knowledge on personal finance to get more confident as time passes.
#2: KNOW YOUR SPENDING HABITS
To grow your golden nest in the future, you must become aware of your shopping habits. Tracking your spending allows you to identify where your unnecessary and unplanned purchases happen. This way, you can modify it to achieve your retirement saving goals.
#3: PRACTICE BUDGETING
Always budget the expenses before signing a lease or making a major financial decision. It is important to recognize the full cost of your choices, including your rent or mortgage payment.
Experts say that the most common rule of thumb in housing is that your total housing costs should be no more than 30% of your gross monthly income. Stay as close to this amount as possible.
#4: GET READY TO RETIRE
A woman’s marital situation can affect her retirement plan. For instance, a woman may outlive her husband by several years depending on their age difference. Second marriages and stepchildren can also affect retirement planning.
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Structure a realistic and attainable retirement plan. Do not forget about your husband’s assets! Know which assets will be divided among you and your children once your spouse dies.
