Women face specified sets of circumstances in retirement. The challenges faced by both sides are usually the same, but with slight differences in factors like women living longer than men. This usually results in more headwinds because of the circumstance of gender roles contributing to the statistical likelihood of women being most likely to experience poverty post 65 years of age.
Women have a gift, however, of being intelligent investors in the long term. This can help them retire with comfort because of keen awareness and planning against the different obstacles they’ll need to face. Below are 3 prominent issues faced by women today.
Longevity
Women statistically have a longer life span than men post-retirement, this means they need to budget for more years outside of the workforce. As a woman, you are more likely to outlive your spouse/husband, therefore becoming solely responsible for your healthcare and household expenses. Not being able to share these expenses in the long term because of your longer lifespan can make this predicament difficult.
The Wage Gap
Women statistically make less than their male counterparts in the workforce. This can affect their retirement planning.
Less money earned means less going into your savings. There is a likelihood that as a woman, you might also not get as much help with your retirement savings as a male counterpart as well. Despite a lot of other factors being even, women are at a significant disadvantage in retirement fund contributions.
Contribution to household finances
In many circumstances, women often let their spouses take the lead on financial matters. This does not just apply to earlier generations. They often leave women in the dark about household debt levels and retirement planning. This issue needs to be solved and widows/women need to educate themselves on their household’s financial status to prepare for the future.
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In Conclusion
The steps to avoid these issues center on women being more involved in their household’s financial health. After securing your position in this matter, you can then move on to being part of the retirement planning process ahead of time to equip yourself on issues you might not be aware of yet. Other tools you can equip yourself with include working with a financial advisor to evaluate investment risks and strategizing for your long-term care.